eBay Stock: A Buy Before Earnings?

The year 2014 hasn't been easy on either of e-commerce's preeminent names, eBay (NASDAQ: EBAY  ) or Amazon.com (NASDAQ: AMZN  ) .

EBAY Chart

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Amazon.com reports later this month, but not before eBay opens its books for the world next week. Here's what investors should be on the lookout for from eBay.

eBay earnings: An opportunity in plain sight?
Investors have been down on eBay since late 2012, which is understandable, but only to an extent. To be sure, the constant (but unfair) comparison to Amazon.com, and its seemingly continual +20% growth rate, has tainted eBay as the underachiever among the two. However, eBay's upcoming earnings will hopefully reiterate why it, and not Amazon.com, could be the better buy at the moment.

Analysts are calling for eBay to produce high single-digit to low double-digit growth on both the top and bottom lines; again, it's not Amazon.com, but certainly respectable for a company of eBay's size. However, it's when you compare eBay's mix of moderate growth that's supported by several long-term tailwinds, such as the ongoing growth opportunity at eBay's PayPal unit, for instance, to its seemingly reasonable value of 12x EV/EBITDA, that should hopefully get investors attention.

Tech and telecom specialist Andrew Tonner argues that, while Amazon.com gets all the love, eBay's upcoming earnings should once again demonstrate why eBay might appear particularly attractive today.

How you can cash in on tech's "next big thing"
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


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  • Report this Comment On July 13, 2014, at 9:15 PM, NetAnaylyst wrote:

    Prudent investors will wait until AFTER the revelations Wednesday to buy eBay stock (or make an even wiser choice to avoid it). It's likely to be dropping a notch and if you think you really have to have it, you'll be getting it at a better bargain than you will tomorrow.

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Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


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