EBay is an amazing success story, as
Internet
companies go. Begun as a simple startup in 1995, offering stock to the
public
in 1999 at an initial price of seventy-five cents a share (!), and
today
holding a very respectable $40+ value at average after a stock split,
those who
got in early made a lot of money. But will EBay stock prices continue
to rise?
Probably. The auction technology EBay offers is
singular,
providing a unique method for the ordinary guy to bring his or her
product to
market and allow the market to set the correct price. There are entire
industries built around this decade-old company.
Storefronts offer the novice who wants to auction
items on EBay
the services of the proprietor, who will get the best possible auction
price
and then ship the item and give the seller the money, minus a
commission.
Websites are sold there, often-bizarre pop culture can be found, and
laws have
been passed specifically to limit the items sold through this unique
technology. And unique deals with other Internet success stories such
as PayPal
are sending EBay even further into the untouchable zone.
With this kind of world springing up around it,
how can EBay
stock prices go anywhere but up?
But there are competitors. It may be like RC
trying to beat
out Coca-Cola, but charities are starting their own websites to auction
items
off. Startup companies are offering cheaper rates and unique markets.
In the end, though, it’s like Dvorak trying to
replace the
Qwerty keyboard. Even though new technologies may be as good as or
better than EBay,
EBay has the current market, and will probably keep it. People know
EBay; it
has brand recognition. And they have histories on EBay, they know how
to use
its utilities, they know how to leverage it and make it work to their
advantage.
You can almost certainly count on EBay stock
prices
remaining stable at the very least. It’s a good core to build your
technologies
stock portfolio around. And there may be more splits in its future,
given
another three or four years; their developers are working hard to build
new and
better technologies to run their business.
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