Is eBay About To Break Out? | FAST Graphs
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- เผยแพร่เมื่อ 28 พ.ค. 2024
- In this FAST Graphs stock analysis, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation will cover eBay. eBay’s momentum seems to be changing - is now the time to be taking a position in eBay for both growth and income? eBay has historically been a growth stock, but in recent years the company started paying a dividend, and so far the dividend record has been excellent, but the main point Chuck wants to discuss today when we look at eBay through FAST Graphs is the valuation. There are reasons why the stock has gotten cheap, and Chuck will go over those reasons. Some of them were the result of an overzealous market, but now the company is in transition.
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Disclaimer: FAST Graphs is a tool designed to reveal and present information related to financial data and investment metrics. It is not intended to provide specific advice or recommendations. Instead, it offers a comprehensive view of relevant data, empowering users to make informed decisions based on their own analysis. It's your first step to a more comprehensive research and due diligence process. In short, it is a tool to think with. The opinions in this video are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned.
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#dividends #stocks #ebay
Long EBAY, quite underrated and undervalued. I buy many things there in its great variety and it's always cheap and arrives early without problems, and if there's some the sellers or eBay themselves solve it fast and good. Thank you!
My three favorite channels: FASTgraphs, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥
While increasing earnings by cutting costs can be good, I'd much rather see earnings increase because of the business growing.
Me to, but such a low valuation creates a great opportunity even when growth is modest. Regards, Chuck
EBAY's yearly revenue has been flat for the last six years-$10,746.00 in 2018 ....$10,112.00 in 2023. And this is not only declining, its declining in nominal dollar amounts. The EPS is growing because EBAY is zealously buying back shares each year, at an average of 10.76% per year for the last six years. This leads to a higher valuation for the shares each year simply because there are less shares, not due increases in growth or productivity. So is this not an example of "a fair company at a wonderful price, not a wonderful company at a fair price," the latter being a preferred option? Note I ask this as a layperson.
Yes, eBay has been buying back shares. But they have also been buying back at very low valuations. When a company buys their shares and valuations that I would also buy their shares I consider that a plus. I don't like share buybacks when I see companies overpaying for their shares in prices where I wouldn't invest in them myself. Regards, Chuck
@@FASTgraphsthank you Chuck for these videos and commenting, but don’t you think though that the thesis that it’s worth buying is marred by the fact that EBay simply isn’t growing organically? EPS increases are due to 1) laying off employees and 2) buying back shares and revenue growth has been stagnant for 6 years (so decreasing in real terms).
This means that a 10 P/E for a stagnant company really isn’t all that crazy. There are tons of *growing* companies (mostly in “unfavorable” sectors like mining, REITS, etc) with P/E’s at 7 or below. I’m not convinced to buy EBay bc the thesis that’s it’s growing is a little smoke and mirrors. Eventually they won’t be able to do that anymore. What do you think?
Another excellent presentation. Keep em coming!
thank you for information
It’s at $48 already, interesting video, the upgrades to FG have been nice, it seems like every couple of weeks there is something new
Thanks for the video and highlighting ebay. I skip ebay here for those reasons: very slow growth, high and rising amount of SBC, narrow moat with a negative outlook, lower operating margins in the last years and therefore no operating leverage. Still you are correct about the appealing valuation and the dividend growth potential. All in all, eBay doesn't look like a desirable business to me. I probably would consider adding ebay below 20$ with current growth expectations. Will we see those prices? I dont think so. However, staring from here, upside potential looks very limited to me. As always, I could be wrong. Good luck to us all
Exactly for all the reason you mentioned, plus the share buyback, it makes it a nice buy and sell stock. Fundamentals are good, but the business isn't attractive for me either.
Also it has a nice margin of safety, so if you can't sell quickly, it isn't a really problem to keep it.
Hi Chuck, great video. You mentioned many times that the closing price in FASTgraphs is the weekly closing price. Would you please advise when you do the updates, is it Fridays immediatly after market closing? Or later on? Or Saturdays, before noon? afternoon? Many thanks.
The historical prices are weekly Friday closes except for the last price on the graph which is the previous day's. That last price is updated daily. Regards, Chuck
Hi Chuck, thanks for sharing. I think that earnings drop that you observe in 2016 is actually Paypal´s spin off.
I think you are correct, thanks.
Great video! Your voice is attractive now. I don't let myself to miss any single video of yours! Cheers!
I held ebay for quite a while. After selling on ebay for a few months, I decided to sell the stock. They were ridiculous to deal with when it came to their indian customer service and the fraud on that site was crazy. That company is a mess in every way possible. I don't see it improving any time soon.
Could I ask where you are from as I’m in England and make a living on eBay all the people I deal with are from Ireland and I’ve always found the service particularly good Although I don’t own any stock yet
I miss FG, living vicariously through Chuck's reviews now :)
Why do you miss FG ?
@@FASTgraphs I was a subscriber and wanted to renew but my account did not show the grandfathered pricing as was promised in an email correspondence, only the new increased pricing. Sent a follow-up email to customer service but didn't hear back. No hard feelings though :)
Thank you chuck and the whole FASTgraphs team!
A look at EXPO might be of great value for your audience, very reasonably valued at the moment I think.
You must be joking
nope@@martinl.4711
it gapped up. i think i'll take a position as someone with a lot more money than I have has chosen to do so.
Go eBay! One of the originals still hanging in there.
You’re only 10 days late. Should have said something late Feb 24…. Looks like a big run up has already happened.
Yo, Mr. Valuation is EBAY the new MPW? I think you should just pitch BTC (Bitcoin) instead. 🎉
With all due respect that is, a pretty snarky comment.You must be so proud . Be sure and come back to me in a year.
He gives his opinion. Desicion to buy is up to us. Is a good investment, mpw fundamentals speaking. Good, Mr valuation.
I'm very happy with my investment in MPW.
MPW is up 27% in a month... You can speculate all you want with BTC, we are investors.
@@paulsondj ?????
awesome video! thank you!!
some ideas for 'undervalued companies':
$LEG
$HPQ
$PFE