How to Make a Profit on eBay Stock

Posted by OliverPearson 0

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eBay is a large online American company. By means of ebay.com, the company provides its users with sales via the Internet.

The history of the company started on September 4, 1995 with a small online auction called AuctionWeb being a part of the personal website of Pierre Omidyar. There is an interesting story about the first lot sold atthe auction. The first thing was Pierre’s faulty laser pointer. It was sold at $13.83. When Pierre asked the buyer if he understood that the pointer is faulty, he said that he was a faulty laser pointer collector.

Today, eBay is one of the top online retailers.  

eBay stock is listed on NASDAQ based in New York under the ticker EBAY. EBay is headquartered in San Jose, the United States.  

If you trade binary options on eBay stock, you need to understand what factors may influence the company’s stock quotes. The key factor is the company’s financial performance.  You can find information about it in the corresponding reports of the company.

http://investor.ebayinc.com/

stcoks-ebayTo understand whether eBay’s revenue grows or not, you need to compare its financial results y-o-y. This gives you an objective idea because the company’s revenue and user activity may vary depending on a season, holidays etc.

If the company earnings grow, the stock quotes will rise. A decrease in revenue results in eBay stock quotes going down.

As the company owns PayPal and eBay Enterprise, its stock is impacted by its subsidiaries’ earnings. PayPal’s revenue depends on the number of transactions carried in the system.   Thus, a rise in the number of PayPal users have a positive impact both on the e-payment system and eBay Inc because selling and buying on eBay is conducted via the PayPal payment system.

To attract new visitors to the website, the company uses publicity by means of releases of interesting stories about the online auction. They mainly concern unusual stuff and services sold on the website.News releases attract much attention to the service and new audience. This is why this may be a positive factor. If a release concerns some scandal, it will have a negative impact on eBay.

Also, news impacting on eBay stock quotes is published on the financial websites like

http://quotes.wsj.com/EBAY

http://www.marketwatch.com/investing/stock/ebay

Speaking about general prospects of the company, this is not to say that it had better times. Comparing to its competitors, eBay doesn’t impress with its revenue.  Besides, the company’s stock is quite expensive and the stock price to revenue ratio amounts four which is much higher than on average in the industry. This makes eBay stock not too attractive to investors. Nevertheless, at the moment the company’s stock is almost at its peak.

share-ebaySpeaking about competition, it’s quite strong in the industry. The key eBay’s competitor is Amazon. Another strong competitor is Alibaba. This company has already captured CIS market and a part of the EU market. And now it’s trying to capture the U.S. market.

Positive factors include future implementation of any new or additional services that will result in a rise of the company’s earnings.

 

Where and How to Make a Profit on eBay Stock

Reliable and time-tested broker TopOption offers options on eBay stock.

I opened the broker’s page and chose eBay stock as an underlying asset. Then, I set time of expiration, investment amount and clicked on the UP button as I expected the quotes to rise:

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At that moment it was 3:16 p.m., and the option was to expire at 3:40 p.m. which meant that I invested for a period of 24 minutes. eBay stock showed a steady trend, and it was unlikely to change.

If Ebay stock quotes went up even by a pip in line with my forecast, I would make an 80% profit.

Time went by fast and I got the following result:

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If you want to earn on the shares of the world’s largest companies, binary options is the best instrument giving you an opportunity even to make a profit on losses of a company at the moments when quotes are falling!

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