This is a step-by-step stock review to answer the question, is Ebay (EBAY) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Ebay (EBAY) stock a good buy?
1. Ebay Company History
- Founded: 1995 by Pierre Omidyar as AuctionWeb, a site for online auctions.
- Initial Focus: Facilitated person-to-person transactions of used goods.
- Renaming: Changed its name to eBay in 1997 to reflect its broader mission.
- Public Listing: Went public in 1998, quickly becoming a major player in online retail.
- Growth: Expanded globally, acquiring PayPal in 2002, which later became a separate entity in 2015.
- Diversification: Acquired various companies, including StubHub and Half.com, to broaden its e-commerce and marketplace offerings.
- Recent Developments: Focuses on enhancing its marketplace platform and digital innovation, including mobile and AI technologies.
- Headquarters: Located in San Jose, California.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: On Sale
- Score: 61
- MOS: 80%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Ebay makes money:
- Listing Fees: Earns revenue from sellers who pay fees to list their items on the eBay marketplace.
- Transaction Fees: Collects a percentage of the final sale price when items are sold on its platform.
- Promoted Listings: Generates income from sellers who pay for advertising their listings to increase visibility and sales.
- Subscription Fees: Receives payments from sellers for premium account services and subscription plans with additional features and benefits.
- Payment Processing: Profits from processing payments through eBay’s managed payments system, including fees for transactions.
- Advertising: Earns revenue from selling advertising space on its site to third-party businesses.
- PayPal (2002)
- StubHub (2007)
- Skype (2005, sold in 2009)
- Half.com (2000)
- Magento (2018)
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Ebay (EBAY) stacks up against other companies.
- Amazon.com, Inc.(AMZN) – 95
- Betterware de México, S.A.P.I. de C.V.(BWMX) – 95
- PDD Holdings Inc.(PDD) – 94
- Five Below, Inc.(FIVE) – 89
- D-Market Elektronik Hizmetler ve Ticaret A.S.(HEPS) – 89
- eBay Inc.(EBAY) – 61
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- CEO Appointment (2020): Iannone became CEO of eBay in 2020, bringing his extensive experience in e-commerce and digital transformation to the company.
- Focus on Core Marketplace: He refocused eBay’s strategy on its core marketplace business, divesting non-core assets like Classifieds, which helped streamline operations and boost profitability.
- Technology Upgrades: Iannone led significant technological improvements to enhance the platform’s user experience, including advancements in AI-driven search and personalized recommendations.
- Promoting Small Businesses: He championed initiatives to support small and medium-sized sellers on eBay, particularly during the COVID-19 pandemic, helping them thrive in challenging times.
- Financial Performance: Under his leadership, eBay saw improved financial performance, with increased revenue and stronger shareholder returns due to his focus on operational efficiency and customer-centric innovation.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Ebay (EBAY) is 83/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Ebay (EBAY) stock a good buy?
Some of the top questions investors can have is Ebay (EBAY) stock a good buy or should I buy Ebay (EBAY) stock?
eBay (EBAY) is a solid investment, particularly for those interested in e-commerce. Under CEO Jamie Iannone, eBay has refocused on its core marketplace, improving user experience and boosting profitability. The company has divested non-core assets, which has streamlined operations and increased shareholder value. eBay’s large, active user base and global reach provide a stable revenue stream, and its efforts to support small businesses further strengthen its market position. However, competition from giants like Amazon and fluctuating consumer spending are potential risks. Overall, eBay’s strong financials and strategic direction make it a viable investment option, but investors should be mindful of industry competition.
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To truly know if Ebay is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.