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Ebay Company Analysis

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Ebay Company Analysis
INTRODUCTION eBay Incorporated, a US company headquartered in San Jose, California, provides online marketplaces for the sale of goods and services, online payments services, and online communication offerings to individuals and business in the United States and internationally. With more than 90 million active users globally, their collective impact on e-commerce is staggering: In 2009, the total worth of goods sold on eBay was $60 billion — $2,000 every second. The business strategy of eBay is exemplified in the company’s mission statement, “eBay’s mission is to provide a global trading platform where practically anyone can trade practically anything”.
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



References: eBay, Inc. (2011). Annual Income Statements 1999-2010. Retrieved Jan 30, 2011 from eBay website. <http://investor.ebayinc.com/annuals.cfm> Eghoff, Peter, and Lucas Mabey. "EBay Analysis." Http://www.stjohns.edu. Web. <http://www.stjohns.edu/media/3/a886bbb6be0e401bbf91c21e014f5356.pdf>. "Growth, Profitability, and Financial Ratios for EBay Inc. and Amazon.com Inc." Financials.morningstar.com. Web. 21 Apr. 2011. <http://financials.morningstar.com/ratios/r.html?t=EBAY>. Kevin Dickson, Siavash Nourozi , Hung Li. "Strategic Analysis & Recommendation: eBay." Pacific Lutheran University. Web. < www.plu.edu/~nourozst/doc/ebay.doc>. "EBay Inc. Buy/Hold/Sell Analysis." Forbes.com. Web. <http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=EBAY>. "Investing in Stock, Stocks Buy or Sell, Hot Stock Picks, Stocks Trading:eBay Inc. (EBAY)."AskStockGuru.com. Web. Apr. 2011. <http://askstockguru.com/cgi-bin/s?s=EBAY>. Yahoo Finance, last accessed April 20, 2011. <http://finance.yahoo.com/q?s=EBAY>

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