In this video, Motley Fool analyst Austin Smith gives the three best reasons to buy eBay (NASDAQ:EBAY). After an impressive run in 2012, eBay opened the new year with a 5.08% rise in prices. Showing huge growth in market growth segment, eBay rejuvenated the market system completely. Austin credits the new fixed-price auction for this monumental growth.

Another reason he gives is PayPal, a subsidiary of eBay. Showing growth of 24%, PayPal's market is growing both locally and internationally, threatening competition like Western Union and MoneyGram.

Furthermore, revenue of acquisitions like GSI Commerce and MercadoLibre are propelling the company forward. GSI has been showing tremendous growth with sales in the double digits. MercadoLibre is virtually the same model as eBay in Brazil. Essentially, eBay can guide the newcomer over hard times, thereby ensuring even bigger gains.

Austin Smith owns shares of eBay. The Motley Fool recommends eBay, MercadoLibre, and Western Union. The Motley Fool owns shares of MercadoLibre. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.