Is eBay Stock a Buy?
eBay (NASDAQ: EBAY) had been a somewhat stagnant player in the e-commerce realm for the past few years, but it sprang back to life this past year amid a sudden interest in e-commerce during the coronavirus pandemic and a new CEO that took over in April 2020. Now, some investors wonder if the transformation will continue and what it will mean for the company's stock.
Admittedly, eBay could again languish in the near term as consumers begin to put the pandemic behind them and return to offline shopping. What eBay investors are asking is not necessarily what happens in the next few quarters, but whether management has leveraged the sales surge in 2020 to place itself on a long-term growth path.
Once a darling of the 1990s tech boom, interest in eBay fell in the 2000s as high fees, free listings on competing sites, and a platform many found difficult to use led to a loss of interest in the company and the stock. Moreover, the fact that one-time subsidiary PayPal (NASDAQ: PYPL) quickly became significantly larger than eBay following its public spinoff did not help its reputation. Despite its more recent improvements, PayPal supports a market cap more than seven times larger than that of eBay.
Source Fool.com
