Life Musings

Okay, I've already talked about this, but I think that it's worth revisiting. Buy Ebay stock now! Here's why.

First and foremost, the stock is cheap -- much cheaper than it should be. People were scared when the economy started its downturn. Its purchase of Skype also caused the stock price to go down. The stock is definitely worth much more than what it's selling for, though.

Second, Ebay goes way beyong mere online auctioning. They also purchased PayPal in October 2002, and it's a huge cash cow. Not only is PayPal commonly used on Ebay itself, it's pretty much the payment method of choice for commercial websites all across the globe. There's a huge source of income here that casual observers don't even know about, folks!

Finally, consider the reviews that Ebay is getting. Here's what Standard & Poor has to say, for example:

PayPal generated $582 million in revenue (27% of total revenue), an increase of 32% from the prior-year quarter. Total payment volume from the online payment service increased 17% on the eBay platform and a remarkable 61% off the platform. PayPal continues to grow at an impressive rate, and currently processes about 9% of global e-commerce. Revenue from Skype was $126 million (6% of total revenue), an increase of 61% from a year ago.

S&P also says,

As the domestic market has started to mature, overseas expansion has become a priority. EBay already has dominant positions in a number of foreign markets, including Germany, Australia, and the United Kingdom, but we expect it to continue expanding across the globe.