This is for a stock market project at my school.
2007-02-18 06:15:19 · 6 answers · asked by mjsaldi 2 in Business & Finance ➔ Investing
My personal opinion is no. It is too expensive to be a good investment. There is too much risk to the stock. It could easily loose 1/2 its value. The company is a great company and provides a great market place. But that does not make it a great investment.
2007-02-18 08:34:41 · answer #1 · answered by Anonymous · 2⤊ 1⤋
First of all, don't listen to anyone who says to buy a stock because "it keeps going up". That might be true, but they better have some really good reasons, otherwise you end up with a situation similar to that of stocks in 1999, where everyone is buying for no good reason, then most stocks lose at least half their value. Not to single out anyone, but EBay is about 50% below its price in the beginning of 2005. Still going up? Hardly.
Anyways, what matters is what the stock will do in the future. Having recently done a valuation of the stock, I think there are two problems for potential EBay investors:
1. Priced in growth is approximately 21% annually for the next 5 years. The expectations for this company are extremely high, making the chances of a disappointment - and price decline - above average. Also, 21% growth is about what the market expects and factors into the current $34 price. EBay could grow earnings at a phenomenal 20% clip, and the stock would probably go nowhere overall.
2. Competition. Although EBay has the first mover advantage in alot of markets, and network effects make barriers to entry difficult (but not impossible) for competitors, Google is introducing its Google Checkout service, which threatens to eat into the profitable PayPal system owned by EBay. This is a subtler threat to EBay because it doesn't attack the core marketplace, but rather the processing - and Google's ubiquity is a huge advantage, as their marketing strategy with Google Checkout shows (it is free for now). Simply put, I don't think EBay is a good investment for the long-term.
If you need more help with your project, my email is on my website at http://www.valuestockreports.com/ - there is also another stock report there you might consider checking out.
Best of luck.
2007-02-18 17:49:57 · answer #2 · answered by Anonymous · 1⤊ 0⤋
It would have been about 5 years ago.
2007-02-18 06:22:50 · answer #3 · answered by Orlando Knight 3 · 0⤊ 0⤋
One of the best. It keeps going up.
2007-02-18 06:22:55 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Yes.
2007-02-19 07:49:09 · answer #5 · answered by Anonymous · 0⤊ 1⤋
install & check on aptistock freeware
2007-02-18 15:44:40 · answer #6 · answered by dinu_pawar 5 · 0⤊ 0⤋