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PYPL and EBAY

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  • PYPL and EBAY

    For many of us on here I suppose eBay/Paypal is the closest thing we have to a boss, so I suppose buying stocks into these companies is a bit like getting company stock options!

    I won't talk about AMZN since anybody knows it's an OUTSTANDING stock to be holding, I've held it for over two years and I love it.

    EBAY and PYPL are more interesting stocks for a discussion. Obviously the two split in 2015 and I believe there was a time in the 00s when it was one of the best high flying stocks to hold.

    https://finance.yahoo.com/quote/PYPL
    finance.yahoo.com/quote/EBAY

    From the charts they both look quite good, although PYPL has had a choppy first couple of years, EBAY is doing great. Fundamentally these companies both look pretty sound too, I was looking at PYPL had both growth in user numbers and transaction volumes, with profits beating forecasts by a long way.

    BUT here is where my caution comes from - EB/PP have far more competitors online now overtaking them and they are now taking up a far smaller market share. From what I'm seeing online more sites are switching to Stripe to process payments, I'm not sure I can even remember the last off-eBay store that I saw that was accepting Paypal. There are also far more ways for sending money between people like Square that are expanding fast, not to mention the likes of ApplePay and so on that will no doubt change the way we interact with payments over the next few years. eBay is also not the heavyweight it once was, in terms of international and overseas markets eBay is becoming a memory while Amazon is taking over the globe. I could go on for hours about the up and coming competitors quickly gaining market share but it's important to remember that the market is also growing at a rapid pace too.

    The charts and the fundamentals paint one picture about these companies, but my general feeling on the ground is something quite different about the future of these companies.

    What do others think?

  • #2
    Ebay and PayPal do have a lot of competition. The competition to eBay
    Other online auction houses - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited
    is not quite the same sort of thing, but they are taking a bite out of eBay's market.

    The primary competition to eBay, in my opinion, is not places that try to compete with exactly the same service (such as, for example, uBid), but newcomers like OfferUp that sell with no fees at all!

    The competition to PayPal, in my opinion, are apps such as Cash, Venmo, etc. that allow people to transfer cash with no fees. While PayPal does allow this also via "Friends/Family" free transfers (intended for non business transactions that are not for the sale of goods or services), PayPal will shut down an account if they sense that Friends/Family free transfers are being used to circumvent fees.
    Please read the forum rules before you post.

    And if you need extra help:
    Modee Tech Support

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    • #3
      So to conclude, would Modee add these stocks to his portfolio?

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      • #4
        I have not held eBay stock for many years, and have never owned PayPal stock. That is not to say that you should not.
        Please read the forum rules before you post.

        And if you need extra help:
        Modee Tech Support

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