First, at Mike's Place, by the Mediterranean, a guy told me that eBay has competition from the free site Craigslist, but that is the nature of competition...it exists, but so does eBay.
Let me break it down.
10yr Treasury yields 2.06%
eBay yields to shareholders equity 18%, Earning to Price is 5.3%
eBay has no debt, and stated book value is 8.4/share. eBay is trading at 14.62 or 1.74x book value.
Amazon and Craiglist pose challenges to eBays business model, but inversely, eBay poses problems to the others as well. If one was to get into business now with minimal cost and an infrastructure in place, why not invest with eBay?
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