Is eBay Stock a Buy Right Now?
eBay (NASDAQ: EBAY) is one of the pioneers of e-commerce. It's easy to forget that for several years eBay controlled a more significant share of the online sales market than Amazon. Of course, everyone knows Amazon has exploded since then, but eBay has been a formidable force for nearly two decades.
The company is mature enough that it even started paying a dividend in 2019. eBay is in certain ways a lower-risk stock that exposes investors to the growth of the e-commerce industry. Let's look at its performance, weigh that against its valuation, and answer if investors should buy eBay's stock right now.
The primary reason why investing in eBay is less risky than Amazon is because eBay runs an asset-light business model. Amazon has spent billions of dollars building its fulfillment centers and logistics infrastructure. Further, Amazon owns many of the products sold on its platform. As Amazon grows more prominent, it requires more significant capital investment to enable its expansion.
Source Fool.com
