eBay Stock Investors Have a Google Problem

Opportunism is a Silicon Valley trademark, so it should come as no surprise that Google (NASDAQ: GOOGL  ) is after a larger chunk of PayPal's lucrative business. The search king is dropping Checkout to focus on Google Wallet in the wake of losing key staff in its payments group.

Google introduced a number of updates to Google Wallet at last week's I/O developer conference, including a mechanism for sending money via Gmail and storing payments credentials securely in Chrome. eBay  (NASDAQ: EBAY  ) , meanwhile, continues to dominate, with PayPal's net volume increasing 21% to $41 billion in the latest quarter, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova.

Investors are nevertheless unnerved: Shares of eBay stock are up just 3% since the last earnings report versus a 6% gain for the S&P 500. Efforts to disrupt PayPal are likely taking the biggest toll. Google's ambitions won't help, but PayPal is also an enduring brand. Don't sell eBay stock if you own it, Tim says, and add it to your watchlist if you don't.

Do you agree? Please watch to get Tim's full take, and then let us know whether you would buy, sell, or short eBay stock at current prices.

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  • Report this Comment On May 24, 2013, at 8:43 AM, CMFJayNew wrote:

    Since you asked, Tim, I'm offering my thoughts...and thanks, as always, for yours....

    I'm long eBay specifically for Pay Pal. I consider the auction biz to be gravy, in the same way that I consider the ad model to be gravy for Google. A means to an (even better) end. I agree with your 'add to watchlist' or even just 'add' rec, because, like visa, amex and MasterCard have proved, payments are not a zero sum game... not to mention the overwhelming use of cash, still, which represents the real goldmine for all these guys...

    In a story that supports the long term trend, which also happens to improve people's lives, I always like having some money on the horse with the head start. Not dissimilar to why I don't fear AMZN, as a long term Netflix bull..

    Again, thank you...


    eBay ticker guide (stock advisor)

    Long eBay, google, Netflix and amazon..

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