Morningstar Rating

Stock Research and Analysis

by R.J. Hottovy, CFA

Bulls Say

With a capital-efficient model, we believe eBay's role as a global commerce facilitator will translate into excess economic profits.
With more than half of the world's Internet users coming from developing markets, eBay has a sizable global opportunity. International markets accounted for 52% of revenue in 2013.
Management's plans to strengthen its core business or extend its reach in international markets through acquisitions, invest in new mobile and merchant services technologies, additional share repurchases could provide a positive stock catalyst. Read more 

Bears Say

EBay faces competition from Amazon and Google, which offer competing marketplaces, online payment services, comparison shopping sites, and ad search engines.
Even though eBay has diversified its business model, the stock remains sensitive to revenue growth expectations, particularly third-party Marketplace volume trends.
Management's decision to incur a tax-related charge on $9 billion of cash held overseas (freeing up $6 billion in availability) could signal the company is entering a new acquisition cycle, a strategy that brings its own integration and overpayment risk. Read more 

Management

After leading the Marketplaces business for three years, John Donahoe took over as CEO in 2008. Before joining eBay, Donahoe was CEO of Bain & Company and at one point had worked for former CEO Meg Whitman. Overall, we believe eBay's corporate governance   Read more 

Profile

EBay provides an online trading platform in more than 40 markets of various sizes across several product categories. With $76 billion in global gross merchandise volume   Read more 

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