There's been relatively little chatter lately which wouldn't fall under the heading of old news in regard to eBay Inc. (NASDAQ: EBAY). In my view that's generally a signal that things are going fairly well in a business. A lack of sensational headlines is a good thing, unless of course you've been patiently waiting for particularly good news. Analysts are still guarded about eBay as an investment but they are beginning to hint at a greater level of comfort with eBay shares based on the fundamentals and an ongoing share buyback program.As much as I dislike eBay from a personal perspective, I still find the company to be in a good position going forward. Yes, there are a great deal of unanswered questions about the future of its core auction business but the facts show that eBay auctions continue to generate increasing mountains of cash. A recent article by SmartMoney explores the current status of eBay and the potential for future growth in its stock value. To me, the whole scenario is summed up by this one single concept, eBay has unquestionably built a very, very large footprint.
As discussed in a recent report by Danny Bradbury at The Guardian, there is still the danger that a huge security meltdown could take place on the eBay auction site which could badly injure about 70% of the company's income earning potential. There are risks involved with all businesses, and internet-based companies are certainly not immune to this. We have assurances that eBay is aggressively addressing its in-house security, and in this regard I do believe that it has gained a little, though not much, ground.
Should I invest in eBay right now? I myself would consider that fairly safe but not yet comfortable. If I held a position in eBay, I'd keep it and wouldn't rule out the possibility of adding to it. This layman stock picker calls eBay a strong hold with just a hint of a whisper toward buy. For the most part I believe that our stuttering economy shall leave eBay uninjured and the impending holiday season should see at least satisfactory company performance.
Should I invest in eBay right now? I myself would consider that fairly safe but not yet comfortable. If I held a position in eBay, I'd keep it and wouldn't rule out the possibility of adding to it. This layman stock picker calls eBay a strong hold with just a hint of a whisper toward buy. For the most part I believe that our stuttering economy shall leave eBay uninjured and the impending holiday season should see at least satisfactory company performance.
For a quick-read on the U.S. economy, check the price of gasoline
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