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As I had discussed earlier this year, one of the changes that I’m doing to my trading method is no longer starting any new trades past August. Therefore, this could very well end up being my last new trade of the year. I will, of course, still be posting my opinion on many of the stocks that I follow, as well as dividend stocks. Because of that fact, it is somewhat fitting that my last trade could be going long Google (NASDAQ:GOOG); it's a stock I have relied on quite a bit in recent years. It’s not been a stock that I have been as successful trading as some others, but still, it remains one of my favorite stocks, and companies.

Before going further, let’s take a look at the numbers we used this time around:

Name
Price
EPS
P/E Ratio
P/E 2012
Return YTD
Sales Growth
Analyst Rating
Book Value
Beta

Google

504.88
26.69
18.14
11.96
(15.34)
23.98
4.74
161.13
1.03
eBay
27.94
1.38
18.85
11.95
0.25
4.91
4.03
12.58
1.12

Long Google

It’s no secret I’m a big fan of Google, and while I’m not sure how its latest move will impact the company, I do still think the company has a lot of growth left, and if buying Motorola (NYSE:MMI) was an important step in securing Android’s future, then it was a brilliant and necessary move. Will the current economic uncertainty impact Google? Absolutely. But I do think it does still have more medium- and especially long-term growth than the stock I am pairing it off against: eBay (NASDAQ:EBAY). And this is despite the fact that they trade at virtually the same P/E ratio.

Short eBay

By almost any measure, I’m a big believer in eBay, especially in its banking business (Paypal) which seems destined for greatness and many more years of strong growth. That being said, because of the size of its other businesses, eBay has been unable to deliver as much growth as I would have expected and hoped for.

The Basic Idea Of This Trade

In terms of trades, this is a very simple one. I’m simply trading two stocks that are trading at very similar valuations, because I believe a lot more in the growth of Google -- despite the fact that it is spread out and has so many competitors.

Disclosure: No positions on GOOG or YHOO.

Source: The Tech Trade: Long Google and Short eBay