EBay Stock Analysts - Will They Ever Agree?
Why Has EBays Stock Price Been Such a Roller Coaster Ride Lately?
My interest stems from the temptation I had to buy eBay stock in the fall of last year. At the time eBay was trading around the $36 mark but, as life's usual distractions intervened, I didn't follow up on my thoughts.
By Christmas I was getting that awful 'loser' feeling as the stock was trading about $10 higher than just a few months earlier! But since then, I've watched the price performance this year in absolute amazement. As I write the stock price is fluctuating around the $28 mark.
Despite recent spikes of hope, the overall trend since January has been dismal. Why? I can't fathom it out.
While I do appreciate the problems surrounding eBay, some of which have been recently highlighted HERE, all but a few of the professional analysts, to a greater or lesser extent, still appear to be supporting eBay as a good investment. So would I be right to assume now is a good time to buy in?
As I write this article I've seen target prices published by analysts of up to $45 and as low as $24 all within the space of 24 hours! How come?
I assume these analysts look at the same fundamentals as everyone else? Read the same news? Live on the same planet? So how can several people, all professionally employed to research these things, reach such vastly different conclusions? Unfortunately I'm no investment expert and I have no answers to give here but, for anyone else tempted to buy in to eBay at the current level I can only suggest they expect the unexpected!
Disclosure: I do not hold any investment position in eBay or any of it's competitors.
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- At the time eBay was trading around the $36 mark
- By Christmas I was getting that awful 'loser' feeling
- I assume these analysts look at the same fundamentals as everyone else
3 Comments
Post a CommenteBay is in the process of buying back 2 billion dollars worth of stock. The cheaper it is now, the more it will be worth later. That should help you understand some of their recent decisions.
Ebay offers nothing for the long-term investor. Its a different story for short-term ones though. I'll let you work out why...
I think it is simple. Ebay maxed out and cannot grow further. This is why they are looking at other avenues for profit. This also explains Ebay's contant site experimentation in 2006. They saw thier own trends and didnt like them. I say the true believer analysts need to wake up.