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Analysis before buying or selling Ebay shares

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Some of the shares on the stock market that you can invest in today are probably not unfamiliar to you and enjoy a high degree of popularity. This is the case of eBay, whose shares are very popular with private individuals because of their high liquidity and the extensive information about it. If you too are interested in investing in eBay shares, here are a few explanations about the company of the same name, as well as advice on how to carry out analyses and monitor the stock market price of these shares.

Elements to consider before selling or buying Ebay shares

Analysis N°1

In particular, eBay could take advantage of the growing number of mobile customers around the world thanks to its mobile application and its payment system that is perfectly adapted to these media.

Analysis N°2

eBay is in the process of becoming a retailer. Thanks to its huge customer base, it naturally has all the assets it needs to succeed in this field and far outstrip other specialist retailers.

Analysis N°3

eBay is also banking on a strategy of buying out various companies over the medium and long term in order to offer an increasingly wide range of services.

Analysis N°4

Finally, eBay is also trying to position itself in emerging markets around the world by developing its online business in promising countries such as India in Asia.

Analysis N°5

As far as threats are concerned, the online security of the personal information of the customers of this group will of course be closely monitored. This includes particularly sensitive banking data as the platform is a prime target for hackers.

Analysis N°6

The eBay group will also have to face increasingly strong competition. The competition from the giant Amazon remains very aggressive and this adversary has been gaining more and more market share for several years.

Analysis N°7

Finally, exchange rates and their variations are also a major brake on eBay's growth since the group carries out a large part of its operations abroad. As a result, profits that arrive in the USA are converted into dollars, which can cause some losses.

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General presentation of Ebay

Of course, it is essential to know Bay well if you want to make relevant analyses of its price. For this purpose, we offer you a detailed presentation of this company with its main activities and sources of income.

The eBay Group Inc. is an American company specialising in online commerce. More precisely, this company is currently the leading online marketplace. The group offers an IT platform that allows individuals and professionals to buy and sell goods and services.

This activity is carried out through various websites including eBay.com, which is accessible in several languages, half.com, rent.com, Kijiji.com, mobile.de and marktplaast.nl. Together, these platforms have more than 185 million users worldwide and enable the group to be present in 190 countries.

More than 93.8% of the group's revenue is generated from online transactions, with the remaining 6.2% coming from marketing services and related activities. The group currently employs 10,800 people worldwide.

The eBay Group's business model and the way it finances itself and generates revenue is to charge a commission on each transaction made in exchange for the services offered. The commission is paid solely by the seller and the buyer does not have to pay any additional fees on the transaction. The invoice to the seller is issued by eBay once a month.

The payment methods accepted on the eBay owned and operated sites are numerous and include of course credit cards, PayPal and direct debit among others. No fees are currently charged by the group on payments.

Analysis before buying or selling Ebay shares
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The major competitors of Ebay

One of the prerogatives to effectively analyse the eBay share price is the proper knowledge of its competitive environment. It is essential to know the main competitors of this company well before starting to study its variations.

Amazon

Amazon is arguably eBay's first direct competitor. This American company specializing in online commerce is one of the web giants. Formerly specialized in online book sales, the company has diversified over time and is one of the most popular and profitable market places in the world today. It was created in 1994 and has been listed on the NASDAQ since 1997. Currently, Amazon employs over a million people worldwide and is present in a large number of countries.

Rakuten Inc

This other company, Japanese this time, is also one of eBay's direct competitors. It has specialized in online services and the sale of online products since the creation of its Rakuten Shopping Mall platform in 1997. It is the largest e-commerce site in Japan and the company has been developing strongly internationally in recent years. The group bought Viber in 2014 and continues to diversify its online activities.

Alibaba Group

Of course, the Chinese giant Alibaba, which is growing in importance in the market, is also a competitor to watch closely before trading eBay stocks. This listed company mainly achieves its profits through income generated on the Internet with a public market intended to facilitate business-to-business exchanges, but also payment and retail platforms, as well as a search engine for online shopping and cloud computing services. Compared to the giant Amazon, Alibaba is making even more revenue.

Google

Finally, it is also imperative to consider the Google group as a threatening competitor for eBay. This American company specializing in technological services and which was created in 1998 has greatly diversified its activities since. Taking advantage of the undisputed notoriety of its search engine, Google has launched “Google Shopping” which lists online product offers and which indirectly competes with the eBay site. Also bear in mind that the Google Company has been part of the Alphabet group as a subsidiary since 2015.


The major partners of Ebay

Over the years, eBay has built strategic relationships with leading companies around the world. We invite you to discover here the main partners of this group.

General Motors 

In 2009, eBay had also signed a partnership agreement with the General Motors group to promote the sale of new vehicles on its online platform.

Dailymotion

Even before that, in 2007, the group had set up a partnership with Dailymotion for the production of videos promoting the products of the platform's sellers.

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Positive factors for Ebay shares
The factors in favour of a rise in the Ebay share price:

First of all, it should be remembered that the eBay group operates on the web and as such represents one of the largest online markets in the world. The competition is developed there, but the online sales players capable of competing with this giant are rare.

This lack of direct competition is due to eBay's business model. Indeed, this company was one of the first to set up a system for selling and buying products online, allowing private and professional sellers to market their products online with an integrated and secure payment system.

The eBay group also relies heavily on economies of scale and therefore takes little risk with less investment as it uses the sales force and products of its vendors to generate turnover. It does not have to worry about inventory management, shipping or the production chain. Managing its activities is therefore much simpler than that of a traditional online sales company.

The functionalities and tools present on the eBay online sales platform are also undeniable advantages for the group. In particular, users appreciate the highly reliable online payment systems that accept various secure payment and remittance methods. The localisation functions and the fact that the platform's sellers and buyers are located all over the world is also a definite asset.

Finally, thanks to its many years of experience in online commerce, the eBay company has built a strong and reassuring brand image with the general public, enabling it to appeal to more and more consumers.

Negative factors for Ebay shares
The factors in favour of a drop in the Ebay share price:

The eBay group has, as we have just seen in detail, several major strengths that should enable it to gain in growth and profitability in the years to come. However, it is necessary to take the time to reflect before taking any decision regarding the increase in this share since the eBay group also has some weaknesses. These weaknesses, although fewer in number than the strong points mentioned above, nevertheless weigh relatively heavily in the balance and should therefore be known to all traders. Here are therefore the main weaknesses of this company.

Firstly, while the eBay group has operated from the outset on the model of a scale strategy, its costs have been increasing over time. This is due to the fact that the group is facing increasingly fierce competition and must therefore redouble its ingenuity in order to offer increasingly innovative and attractive services to its potential customers.

On the other hand, the majority of stock market investors interested in this share regret the total lack of growth strategy on the part of the eBay company. Indeed, the group's management rarely communicates on the elements put in place to develop the business and few figures concerning the objectives are made public.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

In which markets is the eBay group present throughout the world?

Currently, the main market in which eBay operates is the US market. But the group is also well established in other countries with Germany in second place. eBay has local sites for several countries including Argentina, Australia, Austria, Belgium, Canada, China, Korea, Spain, France, Hong Kong, India, Ireland, Italy, Malaysia, Mexico, New Zealand, Netherlands, Philippines, Poland, United Kingdom, Singapore, Sweden, Switzerland, Taiwan and Turkey.

Who are the major shareholders of eBay?

The main shareholders in eBay capital are currently The Vanguard Group with 7.02%, Pierre Omidyar with 4.96%, SSgA Funds Management with 4.42%, BlackRock Fund Advisors with 4.39%, Wellington Management with 2.67%, Magellan Asset management with 2.58%, Independent Franchise Partners with 2.37%, Invesco Advisers with 2.03%, Nordea Investment Management with 1.95%, Lazard Asset management with 1.95%.

Where can I follow the news of the eBay group?

If you wish to stay informed of all economic and financial news as well as important events concerning the eBay group, you can do so from the company's website in the investors section or on a website specializing in the Stock Exchange.

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