eBay has had a disappointing year for a tech stock. Its shares have mostly sat on the sidelines while the broad Nasdaq Composite shot up 33% in the last 12 months. Many investors are aware of how difficult it is to find value stocks among tech giants, since most trade at frothy valuations.
The situation is eerily reminiscent of the pre-Dotcom bubble burst era of the late 1990's, when finding decent bargains among tech stocks was about as difficult as finding a needle in a haystack. Most investors have come to believe that in the tech sector, you have to make concessions: you can either go for a growth stock with a great top-line and close to zero on the bottom-line, or a value stock with a great bottom-line and minimal growth. For the former case, Amazon stands out as a prime investment candidate.
However, eBay is one of those rare tech stocks that easily combines the double-digit top-line growth of a hot technology stock with the bottom-line comfort of a well-run bank. eBay recorded a healthy 16% jump in its earnings and 14% growth in revenue in the last quarter. eBay has a long history of returning handsome profits, something that its online counterpart, Amazon, can hardly lay claim to.
eBay has forged numerous partnerships with large retailers such as Macy's, Target , Wal-Mart , and a host of other smaller chains. Below is a peek into how their respective stocks have been performing over the last five years.