Rather than bringing in outside help like PayPal or StubHub, the company is now building out its own core business for what seems like the first time in decades.
Upon severing its formal ties to PayPal earlier this summer, the company announced a new payment program allowing customers to use Apple Pay, Google Pay, credit cards, and yes, PayPal.
And just this week, eBay found its core appeal again; it launched a program called “certified refurbished.”
By partnering with original product makers like Philips and Hoover, it is labelling certain products on its site “certified.”
That’s what people use eBay for. If they only wanted new items, they have choices… like Amazon.
This new program is exactly what Elliott Management had in mind 18 months ago.
Investors are aware that eBay is doing better. Shares are indeed up 47% year to date.
But that pales in comparison to other eCommerce giants. Amazon has nearly doubled that performance.
And none of this even begins to discuss how low investors valued eBay before it found its groove again.
Despite this sizable share price appreciation, shares of EBAY still trade at just 13.3 times their forward earnings.
To put that in perspective, Amazon trades at 71.6 times its forward earnings.
It’s almost hard to fathom that eBay, which clearly had its heyday more than 20 years ago, is an emerging profit idea.
But apparently, corporate interventions work. And there’s room for it to fly again as it did back when people were using dialup internet.
The company reports its third-quarter earnings next week. It’ll also get headlines when its classifieds deal closes.
Investors will wake up to its deep discount. You should consider beating them to the punch.
To your prosperity and health,
Joshua M. Belanger Executive Publisher & Founder
Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%
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