In the following report, I will analysis eBay’s business including their financial statement, trends in the company’s financial health over recent years and expected potential trends into the future. In addition, I will compare eBay with competitors and analysis the industry sector. Finally, I will make my recommendation and conclusion regarding investment in eBay’s stock or bonds.
BUSINESS AND FINANCIALS eBay is an auction marketplace based online company and a consumer-to-consumer (C2C) company. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category. eBay notifies the buyer and seller via e-mail at the end of the auction if a bid exceeds the seller's minimum price, and the seller and buyer finish the transaction independently of eBay.
Since eBay went live their online auction services, their financial success has been witnessed with an increase from net income $9.5 million in 1999 to &2,389.0 million in 2009. eBay’s core business model for generating operating income is conceptually simple. eBay’s main source of revenues are from listing, feature, advertising, as
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