EBAY

Analysis of Ebay share price

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Some of the shares on the stock market that you can invest in today are probably not unfamiliar to you and enjoy a high degree of popularity. This is the case of eBay, whose shares are very popular with private individuals because of their high liquidity and the extensive information about it. If you too are interested in investing in eBay shares, here are a few explanations about the company of the same name, as well as advice on how to carry out analyses and monitor the stock market price of these shares.  

Elements that can influence the price of this asset:

Analysis N°1

In particular, eBay could take advantage of the growing number of mobile customers around the world thanks to its mobile application and its payment system that is perfectly adapted to these media.

Analysis N°2

eBay is in the process of becoming a retailer. Thanks to its huge customer base, it naturally has all the assets it needs to succeed in this field and far outstrip other specialist retailers.

Analysis N°3

eBay is also banking on a strategy of buying out various companies over the medium and long term in order to offer an increasingly wide range of services.

Analysis N°4

Finally, eBay is also trying to position itself in emerging markets around the world by developing its online business in promising countries such as India in Asia.

Analysis N°5

As far as threats are concerned, the online security of the personal information of the customers of this group will of course be closely monitored. This includes particularly sensitive banking data as the platform is a prime target for hackers.

Analysis N°6

The eBay group will also have to face increasingly strong competition. The competition from the giant Amazon remains very aggressive and this adversary has been gaining more and more market share for several years.

Analysis N°7

Finally, exchange rates and their variations are also a major brake on eBay's growth since the group carries out a large part of its operations abroad. As a result, profits that arrive in the USA are converted into dollars, which can cause some losses.

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General presentation of Ebay :

The eBay company is one of the big names in the American economy and was launched in 1995 by Pierre Omidyar. It is the basis of an auction site that is now the market leader with nearly 300 million users worldwide.

This company's business model is based on the taking of commission on each transaction carried out online in return for the visibility provided by the site and the tools made available to the salespeople who use it, such as secure payment methods.

 

To know the competition of the Ebay action :

While the Ebay group is undoubtedly one of the pioneers of online sales between private individuals, it has gradually developed other B to C activities and is now competing with many companies around the world, some of which are not directly threatening. To find out more about this international competition and to better understand this market and its stakes, here is the list of companies directly competing with Ebay in the world.

 

The strategic alliances set up by the Ebay group :

Over the years, eBay has built strategic relationships with leading companies around the world. We invite you to discover here the main partners of this group.

 

Introduction and quotation of the Ebay action :

eBay shares are listed on the US Nasdaq market and can be followed live on the internet with real-time quotation. Historically, there has been a clear upward trend in the value of these securities over the last few years, particularly since 2009, when eBay shares have risen from a low of $10.87 to over $55 today.

 

Stock market data

 

Economic history

To better understand the historical evolution of eBay's share price, it is interesting to know some of the key dates and facts, including the following.

It was at the end of the 1990s that the company joined other big names in the new technologies sector such as Yahoo or Amazon, taking advantage of a large market capitalisation. Unfortunately, it will also suffer the crash caused by the bursting of this bubble.

From 2007 to 2008, eBay will generate a turnover of no less than 1.7 billion dollars in one year and will continue to grow since then.

More recently, in 2014, eBay is once again creating a fad for traders by launching an online service that allows merchants of major brands to sell products to individuals, called "The Plaza".

 

The advantages and strengths of the eBay share as a stock market asset:

First of all, it should be remembered that the eBay group operates on the web and as such represents one of the largest online markets in the world. The competition is developed there, but the online sales players capable of competing with this giant are rare.

This lack of direct competition is due to eBay's business model. Indeed, this company was one of the first to set up a system for selling and buying products online, allowing private and professional sellers to market their products online with an integrated and secure payment system.

The eBay group also relies heavily on economies of scale and therefore takes little risk with less investment as it uses the sales force and products of its vendors to generate turnover. It does not have to worry about inventory management, shipping or the production chain. Managing its activities is therefore much simpler than that of a traditional online sales company.

The functionalities and tools present on the eBay online sales platform are also undeniable advantages for the group. In particular, users appreciate the highly reliable online payment systems that accept various secure payment and remittance methods. The localisation functions and the fact that the platform's sellers and buyers are located all over the world is also a definite asset.

Finally, thanks to its many years of experience in online commerce, the eBay company has built a strong and reassuring brand image with the general public, enabling it to appeal to more and more consumers.

 

Disadvantages and weaknesses of the eBay share as a stock market asset :

The eBay group has, as we have just seen in detail, several major strengths that should enable it to gain in growth and profitability in the years to come. However, it is necessary to take the time to reflect before taking any decision regarding the increase in this share since the eBay group also has some weaknesses. These weaknesses, although fewer in number than the strong points mentioned above, nevertheless weigh relatively heavily in the balance and should therefore be known to all traders. Here are therefore the main weaknesses of this company.

Firstly, while the eBay group has operated from the outset on the model of a scale strategy, its costs have been increasing over time. This is due to the fact that the group is facing increasingly fierce competition and must therefore redouble its ingenuity in order to offer increasingly innovative and attractive services to its potential customers.

On the other hand, the majority of stock market investors interested in this share regret the total lack of growth strategy on the part of the eBay company. Indeed, the group's management rarely communicates on the elements put in place to develop the business and few figures concerning the objectives are made public.

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