Evaluating Ebay's Suitability For Investment Of $ 25 Million Dollars

There are many major competitors for EBay. Of the many companies that are in the same industry which are at the top of the Hoovers in depth list is Amazon, Google, Overstock.com, Walmart.com, HSN and the list goes on. The industry that these companies are in is a multibillion dollar industry. All these companies know that the consumer is their main concern. The consumer will always have a these companies doing all they can so that they stay on top.[6]

Ebay is one of the world's largest e-commerce and multinational corporation. Here are some facts, the company was launched in 1995 as " Auction Web," on labor day weekend by Pierre Omidyar. Later the name was officially changed to ebay in 1997 because many customers and media coverage referred the website as ebay. It has over 200 million registered users by 2015 and branched out into twenty five countries. There are thirty five thousand employees working on eBay in that 42% are female. The company net revenue by 2014 is 17.9 billion dollars. There are about 25 million sellers and the number of items listed in the market places are 800 million. The daily search on eBay is 250 million and the hourly search is 11 million. 60% of company revenue comes from

Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.

Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%

With the development of latest IT technologies, it started heavily focusing on information & communication technology (ICT). Among other technologies it focused especially on Big Data. This had a major role in making this company what it is today. They also used big data to improve its relationship with its customers and to give them more relevant search results which was far superior then its peers. They focused on collecting its consumer surfing habits to evolve a very predictive and relevant user experience. Finally, it can be said that ebay.com owe its success

Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment.  The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:

The masterminds behind eBay are also responsible for Shopping.com, Stubhub, Rent.com, BillMeLater, MicroPlace, and many other successful sites.

3. How does the current market condition affect eBay’s decision? Should eBay go ahead with the offering?

Ebay has many challenges to face such as cyber attacks but despite these they still maintain certain long term prospects. Ebay seems well suited for investment and has potential to increase their capital gains significantly in the long-term.

The purpose of the response is advise the investor about the companies he is considering to invest in. The investor wishes to learn more about the profitability, liquidity and asset efficiency of the said companies along with a recommendation of which company would be most beneficial to invest in.

eBay is an American multinational corporation and e-commerce company, that provides consumer-to-consumer sale-services through the Internet. eBay was initially founded as an auction web by a computer programmer called Pierre Omidyar, and during the dot-com bubble it manage to prevail and it ended up being a notable success story. In September 1997, the company officially changed its name to eBay and in 1998 it went public. Today it is a multibillion-dollar business with operations localized in over 30 countries (Global Trade, 1995-2016). There are millions of items available on eBay, from used cars to collectible items such as coin memorabilia. The firm empowers exchange on local, national and global business sectors around the globe. Unlike Amazon, which threatened the existence of local retailers, eBay facilitates local individual retailers/mom-and-pop stores/retail chains and offered them a platform to sell their merchandise with the advantage of same-hour delivery.

eBay was founded in 1995 and gained the first mover advantage establishing itself as the first major online auction site. The firm started out offering its' services as an intermediary, facilitating the auction of goods by providing a common platform to be used by buyers and sellers. Today the firm has evolved significantly, operating across the globe with more than 97 million different active users registered (eBay, 2012). In total, the organization facilitates the sale of more than US $2,000 every second of every day (eBay, 2012). The growth of the auction service has died classified the development as well as acquisition strategies to provide services and products that complement the core operations. For example, the acquisition of PayPal, the online payment provider has complimented the ability for consumers to pay for goods

eBay is a growth company with low fixed costs associated with its business. The company's growth has been relatively stable, and it tends to track the broad economy and the development of e-commerce. With a beta of 0.92, the growth in eBay's business seems fairly reliable. The company is profitable and its growth is managed slowly. Based on this assessment, eBay can handle some debt as a means to lower its cost of capital, but should not have more than the 30% range. There are a few reasons for this. The first is that while eBay has the top market position in its industry, the industry itself is still growing. Thus, eBay might not be able to retain its leading market position. The company's current cash flow can support taking on debt, but the future cash flow is uncertain. Thus, eBay can expect to meet some debt obligations, but should not take on too much leverage. It is also worth mentioning that eBay should use more equity in its capital structure because it is oriented towards long-term growth. Equity will help the company to align its capital structure with the time frame of the investment, which is for the long run.

The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its

The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.