eBay Inc. (NASDAQ: EBAY) is looking very attractive at the current price of $34.49. The stock has been beaten down due to a lackluster 1Q report and outlook (see conference call transcript). However, I think its time to buy into eBay at current levels.
Some things to note about eBay:
1. eBay Express looks very promising and the design looks very nice and clean.
2. eBay Express will take away revenue from companies such as Amazon.com, Inc. (NASDAQ: AMZN), Buy.com (Private) and Overstock.com, Inc. (NASDAQ: OSTK)
3. Skype continues its tremendous growth and should continue to add to the bottom-line.
4. Netgear is ready to rollout their Skype phone. This area looks very promising for Skype’s future. As more and more cities become WiFi ready we’ll see more use of devices such as this.
5. The talk of eBay monetizing their webpages by using advertising should bring in huge amount of revenues. This will have to be done in a way that it doesn’t upset sellers with competing ads and doesn’t distract buyers. With the volume of eBay's traffic, this has a huge potential.
6. The Google threat is overblown, especially considering that Google’s latest offerings such as Google Talk and Google Finance have been lackluster.
7. The 25% stake in Craigslist was a good move for eBay.
8. PayPal’s latest offering of payments via cell phone looks very promising as well. I don’t see Google’s new payment offering to be a threat to PayPal anytime soon.
(Full disclosure: I own EBAY shares.)