EBay- Bullish Or Bearish

Jun.17.14 | About: eBay Inc. (EBAY)

Summary

eBay's weekly close below $50 breaks eighteen month critical support line.

eBay underperformance has come in spite of positive signs within the company.

Mercardolibre is a better alternative at current prices.

While the NASDAQ has been rallying to post-tech bubble highs, eBay stock (NASDAQ:EBAY) has been stagnant for the past eighteen months. eBay has some positive signs such as outperforming Amazon in the 2013 holiday season, and Paypal continues to grow as the leading online payment platform. However, falling earnings performance and a recent breakdown of $50 technical support makes me wary on the stock. I also mention in the video why I think Mercadolibre (NASDAQ:MELI) has a brighter outlook than eBay long term

Disclosure: The author is long MELI. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.