Analysis Of Ebay

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“EBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. EBay offers different opportunity to its customers to purchase an item. In fact, they also included the possibility of purchasing a product instantly with the option “Buy it now”. The major auction for the company is basically to offer a concept of purchasing and selling products online.” (Profile: eBay, Inc, 2014) The reason why I choose this company is the fact that I very often use this website for diverse reasons. I can either purchase but also sell some old products that I’m not using anymore and then make some money while making someone happy with a lower price that in the current market. I strongly believe that EBay gives a good image of our society and generation nowadays. Almost everything can be done online and the “virtual” world has a huge impact on people. I guess people learned how to use all those different websites and achieved a certain knowledge concerning all those new technologies. I think it’s very interesting to learn more about such a big and famous company as EBay that’s why it caught my attention. Concerning a possible investment in EBay I strongly believe it’s useful to look at the finance of the company. As far as we know the investment grade of EBay as a long-term investment is quite high. “The company has a debt/capital ratio of 10% relying on very l... ... middle of paper ... ...or EBay compare to the last years. Overall I strongly believe that EBay’s prices are not justified. The company keeps being successful and keeps delivering strong results that’s why I would encourage investors to invest in EBay. Even though people always think that EBay is only a place where people bid to purchase an item, they forget that it’s also a place where most of the transactions are made at a fixed price. Amazon Inc. stays the leader in that field but EBay has a commanding position in the second spot. As a company in the online retailing, EBay Inc. will have to deal with the progress of technologies in the future and then over face different challenges. As a leader in that market, even though the estimations for the future concerning its prices earnings ratios are not really encouraging I don’t think it reflects the strong results delivered by the company.

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