eBay Stock (Is eBay Stock Good Buy?)
eBay is a consumer cyclical company based in the United States that trades on the NASDAQ under the ticker eBay. It is one of the world’s most well-known online marketplaces. If you want to buy its stock, you’ll need to find a broker who gives you access to the NASDAQ, as that’s the main exchange where it’s traded. Read through to get all the information you need to know about eBay stock.
How to Buy eBay Stock in 2022
eBay is one of the world’s largest online marketplaces, where customers can buy and sell a wide variety of goods. Since its IPO, the company’s stock has increased by nearly 13,500%.
Today, we’ll show you how to buy eBay stock online with no commissions. We’ll also provide information about the company’s financial health to help traders decide whether to buy or sell eBay stock.
More Information on eToro
Residents of the United States are not required to pay any deposit fees and can begin trading with as little as $10 in their eToro accounts. eToro accepts e-wallets, credit/debit cards, ACH transfers, and wire transfers.
The latter takes the longest to process, causing a trader’s ability to place an order to buy eBay stock to be delayed by a few days.
E-wallets are quick and easy to use, and traders can fund their accounts with PayPal, Skrill, Neteller, and other services. At eToro, you can buy a small portion of eBay stock. The broker allows for fractional stock ownership.
The amount will be determined by the asset, as well as other factors, such as whether it is a weekend. The overnight fee for a short position on eBay is 0.0219 percent at the time of writing.
A long position on eBay will incur a 0.0225 percent overnight fee for each day they left it open.
Notably, US clients seeking to purchase eBay stock must use eToro or Webull, as the SEC prohibits CFDs. Credit/debit cards, e-wallets, and wire transfers are all acceptable payment methods.
3. Webull
Webull is distinct from the other brokers on this list. People can also save for retirement by purchasing stocks through an IRA at this brokerage. Webull currently offers Traditional, Rollover, and Roth IRAs, with additional account types in the works.
They can make traditional IRA contributions with funds that investors may deduct on their tax returns. Any earnings will be tax-deferred until they withdraw them for retirement.
Webull’s Roth IRA provides tax-free investment earnings. This IRA’s contributions are not deductible. Investors can transfer funds from their previous employer-sponsored retirement plan to a Rollover IRA.
Step 2 is to Research eBay Stock
Below, we discuss some eBay fundamentals to save traders’ time and research. This section includes information about the company’s business model, eBay stock history, and dividends.
We also looked at recent earnings calls to see how the company’s finances are looking.
What is eBay?
In 1995, US entrepreneur Pierre Omidyar founded this company in California. Initially, eBay only provided customer-to-customer auction services.
However, it quickly developed into a multifaceted e-commerce platform that is now offering business-to-consumer services.
eBay survived the dot-com bubble after going public in September 1998, making it one of the few success stories of the time.
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eBay Purchase of other company
Although it has since relinquished control of all three companies, eBay purchased StubHub, Skype, and PayPal. Since selling PayPal in 2014, eBay has focused on retaining customers and increasing advertising revenue.
Businesses can now create a shop on the eBay platform to sell goods. Individuals can also list new, used, or homemade items for sale. Buyers on eBay can buy products on auctions that are used or brand new.
Instead of waiting for the listing to end, people can make instant fixed-priced purchases using the ‘Buy it Now’ function. eBay has its own NFT marketplace as well.
How Much is eBay Stock Worth?
In September 1998, eBay became a publicly traded company. Traders could buy eBay stock for a round $18 when it was added to the NASDAQ. Considering eBay’s five stock splits, the IPO price would be around $0.35.
Let’s look at the eBay stock chart to see how the company has performed. Until 2015, eBay stock hovered around $10.
eBay sold its PayPal business in July 2015, and the stock initially rose, rising from around $12 to $28 in less than a month. Fast forward to 2020, and the e-commerce industry was even stronger.
More Information on eBay’s stock worth
By this point, eBay stock had risen to $81, a 62 percent increase since the beginning of 2021. In November 2021, eBay stock outperformed Q3 earnings estimates, but Q4 guidance disappointed investors.
As a result, the stock had dropped to $64 by late December. Many stocks fell in the first few months of 2022 as investors worried about a recession caused by rising inflation and ongoing conflict in Europe.
Tech stocks recovered by the end of March 2022. However, the current share price of eBay is roughly 46% lower than its all-time high in October 2021.
EPS and P/E Ratio
Part of the research process prior to opting to buy eBay stock is looking at the previous earnings calls. See some analysis taken from the last four financial reports below:
‣ Q2 2021 – Reported EPS was $0.99. This was a surprise of 2.63%
‣ Q3 2021 – Reported EPS was $0.90. This was a surprise of 1.82%
‣ Q4 2021 – Reported EPS was $1.05. This was a surprise of 5.69%
‣ Q1 2022 – Reported EPS was $1.05. This was a surprise of 1.45%
Market Capitalization
eBay has a market capitalization of nearly $25 billion at the time of writing. As a result, they classify this stock as a large-cap.
Index Funds
‣ Invesco QQQ Trust
‣ Vanguard S&P 500 ETF
‣ SPDR S&P 500 ETF Trust
‣ Vanguard Total Stock Market ETF
‣ iShares Core S&P 500 ETF
eBay Stock Dividends
While eBay isn’t the highest-yielding divided stock, investors will still receive a quarterly payment.
At the time of writing, the running dividend yield is slightly over 2%. The most recent payment made to eBay investors was $0.16 per stock.
eBay’s Technology-Led Re-Imagination is Well Underway
eBay began allowing the purchase and sale of NFTs on its platform in May 2021. KnownOrigin is one of the most innovative markets for non-fungible tokens (NFTs).
eBay announced its acquisition of the company in June 2022. This is a significant step forward.
- They established KnownOrigin in the UK in 2018
- The company makes it possible for creators, buyers, and sellers of NFTs to engage in blockchain-supported transactions
- KnownOrigins has existing partnerships with big names such as Adobe, Adidas, and Netflix
- As eBay is one of the world’s leading online marketplaces, the team hopes it will enter a new era and attract more NFT collectors and makers with this acquisition
- The CEO of eBay noted that a growing number of digital assets are being added by its users
How to Reduce Risks
eBay was one of the very first online marketplaces. The company has been in operation since 1995 and currently has approximately 142 million active buyers.
This guide has explained how to buy eBay stock in 2022 using a regulated stock trading platform.
1. Avoid the scams
Unfortunately, there are many scam “brokers” out there attempting to steal your money. When you see binary options ads and automated investment algorithms that generate excellent returns, you should be extremely skeptical.
In these cases, the best thing to do is to decline these advertisements right away. Use our broker recommendations when purchasing stocks online.
We have an active account with the brokers we chose, and we test them regularly.
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2. Diversify your Portfolio
Committing all of your savings to one or two stocks If eBay fails, you will lose all of your money. uy other stocks besides eBay to diversify your investment portfolio.
This practically means diversifying your holdings and not putting all of your eggs in one basket. The optimal number of shares in a portfolio ranges between 20 and 30.
Conclusion
eBay was one of the very first online marketplaces. The company has been in operation since 1995 and currently has approximately 142 million active buyers.
This guide has explained how to buy eBay stock in 2022 using a regulated stock trading platform.
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