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Sold Ebay at 32.91. However, I'm very bullish on the company in the long-term.
Signs that Google may try to become a force in Ebay's e-commerce and online payment businesses, coupled with investor concern over slow growth and stiff competetion in markets like China and South Korea are unfound!
Ebay is now competing from a position of strength... The company is reaping powerful synergies from its three major branches: combining on-line shopping (its core) with on-line payments (pay-pal) and on-line communication (the internet phone-calling program Skype). The company's plan is for the flagship brands -- eBay, PayPal, and Skype -- to grow as standalone businesses, participate in larger markets, and create entirely new ones. Three businesses drive traffic to each other, leading to new opportunities.
Also, upbeat reports from Shopping.com, another Ebay business, and the newly launched fixed-price site called Ebay Express invite large merchants like Walmart Stores, Nordstrom, and Circuit City. With 40 million shoppers a month, the site enables merchants to reach a wider audience than they do on their individual sites. It offers buyers product reviews and the ability to do price comparisons.
Skype's rapid adoption of more and more people may make it the fast growing internet property ever! Last week, they have reached 100 million registered users, double the number it had when it was acquired by Ebay for 2.6 billion six months ago. The unit's scale of business is truly impressive with more than 500,000 downloads every day, and after only three years, accounts for 7% of all international long-distance phone call minutes. Skype could easily drive growth on Ebay's market places by allowing buyers and sellers to talk directly, and could also increase the number of people who use PayPal.
PayPal, eBay's online payment system, could see substantial growth from international expansion, financial products and mobile payments. This will likely be a principal growth driver for Ebay over the next five years. PayPal will step up investments in order to double the number of markets to 105 countries where it offers the online payment service and increase the different currencies in which it accepts payments to 17 from seven now. PayPal is eBay's fastest-expanding major business, growing 44 percent to $335.1 million in revenue last quarter from a year earlier and topped $1 billion for the first time in 2005.
Signs that Google may try to become a force in Ebay's e-commerce and online payment businesses, coupled with investor concern over slow growth and stiff competetion in markets like China and South Korea are unfound!
Ebay is now competing from a position of strength... The company is reaping powerful synergies from its three major branches: combining on-line shopping (its core) with on-line payments (pay-pal) and on-line communication (the internet phone-calling program Skype). The company's plan is for the flagship brands -- eBay, PayPal, and Skype -- to grow as standalone businesses, participate in larger markets, and create entirely new ones. Three businesses drive traffic to each other, leading to new opportunities.
Also, upbeat reports from Shopping.com, another Ebay business, and the newly launched fixed-price site called Ebay Express invite large merchants like Walmart Stores, Nordstrom, and Circuit City. With 40 million shoppers a month, the site enables merchants to reach a wider audience than they do on their individual sites. It offers buyers product reviews and the ability to do price comparisons.
Skype's rapid adoption of more and more people may make it the fast growing internet property ever! Last week, they have reached 100 million registered users, double the number it had when it was acquired by Ebay for 2.6 billion six months ago. The unit's scale of business is truly impressive with more than 500,000 downloads every day, and after only three years, accounts for 7% of all international long-distance phone call minutes. Skype could easily drive growth on Ebay's market places by allowing buyers and sellers to talk directly, and could also increase the number of people who use PayPal.
PayPal, eBay's online payment system, could see substantial growth from international expansion, financial products and mobile payments. This will likely be a principal growth driver for Ebay over the next five years. PayPal will step up investments in order to double the number of markets to 105 countries where it offers the online payment service and increase the different currencies in which it accepts payments to 17 from seven now. PayPal is eBay's fastest-expanding major business, growing 44 percent to $335.1 million in revenue last quarter from a year earlier and topped $1 billion for the first time in 2005.
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