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I have been an equities enthusiast for over two decades. I have read tens of thousands of pages on investing in the stock market and continue to read about investing on a regular basis. Daily, I watch the stock market and study individual companies. I am a former military officer. I am a... More
  • EBAY Surges On Cyber Monday 1 comment
    Dec 2, 2013 11:08 PM | about stocks: EBAY

    EBAY surged to 53.08 after the open and tapered to close up 1.64% at 51.35, on heavy volume of apx. 25 mil, today, while market closed slightly down. Beyond simply getting attention because it is Cyber Monday, there was some other news:

    For Black Friday and Thanksgiving, "ChannelAdvisor said its clients saw a same-store sales increase of 25% at Amazon (31% just on Thanksgiving) and 35% at eBay (26% on Thanksgiving)."

    "eBay got one upgrade today, from SunTrust Robinson Humphrey's Rob Peck, who raised his rating to Buy from Neutral, and raised his price target two bucks to $61, writign that the 1% decline in the shares this year, as of this morning, had created a 'much better risk/reward entry point for investors.'"

    "Also beating the drum today for eBay was Topeka Capital Markets's Victor Anthony, reiterating a Buy rating, and a $64 price target, writing that the ChannelAdvisor tally for the company from Thanksgiving day through this morning totaled 31% growth in sales, higher than Amazon's three-day average of 29.7%.

    Quotes are from Barrons, 12/2/13.

    Unfortunately, my money to buy more wasn't transferred quickly enough to buy some more before this pop. However, the money is in now, so I'll be ready.

    I was thinking, today, that there is argument that eBay should begin its ascent in earnest in early 2014. I think at that time, the portfolio managers who sold out for 2013 to shed losing or flat positions will be clear to start nibbling, again. Also, the end of year tax loss selling will be beyond the 30 day wash rule window, so those who sold to record tax losses will be clear to start buying, again.

    After a year (2013) of the EBAY stock going nowhere despite the fundamentals being sound and improving, 2014 should be a year for the stock to catch up with the fundamental story. Setting aside what volatility might come from geopolitics (the upcoming budget battle, for example), and focusing only on EBAY's story, we should see that the best daily deals on EBAY's stock price will have been had in 2013, not 2014.

    'eBay's growth also exceeded the overall industry growth rates for Thanksgiving Day and Black Friday reported by other data sources, indicating that eBay gained significant market share,'"

    Disclosure: I am long EBAY.

    Stocks: EBAY
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    Author’s reply » Forgot to mention this little detail, too:
    PayPal reported that mobile payment volumes rose 114.7% Y/Y on Thanksgiving, and that mobile shopping activity rose 91%. Also, EBAY was the second most visited website on Black Friday, after Amazon. (Market Currents 11/29 and 12/2 and Barrons, 12/2)
    2 Dec 2013, 11:15 PM Reply Like
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