Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online marketplace gorilla eBay has earned a respected four-star ranking.

With that in mind, let's take a closer look at eBay and see what CAPS investors are saying about the stock right now.

eBay facts

Headquarters (founded)

San Jose, Calif. (1995)

Market Cap

$68.7 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$14.5 billion

Management

CEO John Donahoe (since 2008)

CFO Robert Swan (since 2006)

Trailing-12-Month Return on Equity

13.6%

Cash/Debt

$9.4 billion / $4.5 billion

Competitors

Amazon.com

Google

Overstock


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 4,453 members who have rated eBay believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, fellow Fool Thomas Engle (TMF1000), touched on a couple of eBay's potent sources of growth:

[eBay] has PayPal which is another excellent addition to their business. And PayPal is going to grow much larger. This year millions of offline merchant locations will be accepting PayPal. I expect in the next two years we will see PayPal revenue soar -- that alone is reason to own [eBay]. ...

PayPal wasn't [their] only strategic acquisition -- GSI Commerce hosts websites for 180 retailers which include some big names. Many of those retailers were among the first to accept PayPal in their brick and mortar stores. GSI Commerce did much more for [eBay] than just make PayPal more popular -- they led about 18 merchants to sell their products on [eBay] not relying only on their website for web sales. And GSI continues to add more brick and mortar stores as clients  

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, eBay may not be your top choice.

In fact, it's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article Why eBay Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, eBay, and Google. The Motley Fool owns shares of Amazon.com, eBay, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


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Philip Cohen

"eBay has earned a respected four-star ranking."

Dream on, people ...

Let’s take a look at the record of eBay’s stock price under the helmsmanship of John Donahoe. In August 2007 both eBay’s and Amazon’s stock prices were ~$40; now (June 2013), Amazon is ~$277 and eBay is ~$52. What does that tell us? Well, the eBay shills will tell us that Amazon is grossly over priced and eBay is grossly under priced, but who puts the “value” on these stocks? Is it not the same—on Wall Street? After all, neither of these stocks are income producing stocks: neither of them have ever paid a cash dividend to shareholders (and only at eBay do the senior executives take away loads of cash in the form of gifted bonus shares on “performances” that have little effect on the stock price); and if you calculate the lack of a cash dividend for shareholders into the equation, the performance of eBay’s stock cannot be described as other than abysmal; and clearly, the smart money on “Wall Street”—quite rightly—judges the eBay/PreyPal complex to be a “dog”—arf, arf …

But, you may say, PayPal will ultimately save the day; indeed, “PreyPal” has been saving the day; if you look up eBay on the trefis.com website you will see that they estimate that eBay is now getting more value from “PreyPal” than they are getting from their marketplace; in other words the eBay marketplace is continuing to atrophy. Regardless, anyone that understands how the payments system works knows that the clunky “PreyPal” ultimately has no future outside of its mandated place on the eBay marketplace or as the merchant account provider of last resort for those very small merchants that don’t have the confidence of their own banker. The reality is the new professional online digital wallets that are becoming available from MasterCard (“MasterPass”) and Visa (“V.me”) will soon enough stop the clunky, unprofessional “PreyPal” in its tracks. As for the possibility of “PreyPal” having any real success at physical point of sale—LOL … http://bit.ly/UVXx53

Then there is that little problem with eBay being demonstrably the greatest calculated facilitator of auction wire fraud on consumers that the world is ever likely to know … http://bit.ly/11F2eas

Nevertheless, “The band continued to play on, even as the bow dipped lower and lower.”—The Titanic/eBay Story ... http://bit.ly/YvxFEg

July 03 2013 at 4:09 AM Report abuse rate up rate down Reply