Ebay Business

EBay is a company that continues to keep growing. This online auction site has provided many people with the options of buying and selling products to others around the globe. With the increases in technology I feel that it would be a good investment if I were to invest in stock in EBay.

EBay is a growth stock, with lots of potential in earning higher profits above the average of most companies. EBay is listed in the Internet Software and Services industry, and are dominating over its other competitors. One of their competitors is Amazon.Com. In 2005 both competitors have gone back and forth in the closing stock values. At the end of October EBay was down Amazon by $1.80. From 2001-2004 EBay was the dominate company in the closing values. Amazon's stocks are out doing EBay at the time, but with the way EBay has been going it will be no time until they are above Amazon. Another one of EBay's competitors is Yahoo.Com. This search engine website's stock stays around $40.00 average in its closing values. Yahoo's stock is going well for its industry, and gives all the other competitors competition.

The Price Earning ratio:

EBay: 63.45

Amazon: 38.42

Industry: 30.53

Because Amazon's PE ratio is low it is considered a good investment, and future investors should look for a low PE ratio. However EBay is considered to not be a good investment because its ratio is so high. With this information this would be a negative impact on my company because EBay has a high ratio. This could be a poor investment to the company.

There was not any recent news on EBay's stock; however there was some news on its recent signing of VeriSign. It is an online payment business. This collaboration gives EBay and Paypal the opportunity to use payment services on other sites other than EBay.

I could not find any information pertaining to if EBay paid dividends. On Yahoo Finance it said that is was not available.

This stock can be risky because at any moment no one could want to use the EBay site, or another site similar to that of EBay could form and be dominating over EBay. Also because of the high PE ratio this could be a bad investment. The beta on the stock was also not available.

An analyst

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