I like Ebay the stock these days and own some in the 24′s. It was not a normal buy for me as I posted (search it) when I bought it, but it was/is too hated. There was toooo much Google fear.
It has been a nice trade – sitting now back above $27 today and up 5 percent today alone.
Yesterday, Google and Ebay started kissing . It just makes sense to me that they will start playing nicely. I think EBay could have a nice little run. Google can always run.
Skype is totally priced out of Ebay and while I believe in anything Google does, what are the odds of beating Ebay at their core business. Zilch. The big Zot. Le Grande BAGEL.
It makes more sense to play nicely as they started to do yesterday. Note to BUSH – alliances are gooood (Pleaase save the mean political backlash – it is a jooooke people).
Now, if I was a one stock guy and had to bet it all on one company – balls to the wall – it would still be Google (no current position). I love the way the stock marks time drifting – not collapsing – despite massive insider sales (can’t blame a VC for booking a few billion here and there) and $70 oil and wars and the general malaise of the market.
Here is why Google holds in. Google uses brain and bandwith leverage. Both are in a deflationary spiral. Heck, they may compete against Ebay but they would all use Skype if it worked better. They package and ship nothing, NADA. They have their customers surfing and tagging and sharing and doing all the heavy lifting. Whats on the horizon – MORE OF THE SAME – FOREVER.