For example, PayPal will be facing intense competition from Checkout, the Internet payment system of Amazon.com (Nasdaq: AMZN)
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From its beginnings as an online auction hub 17 years ago, eBay has morphed into one of the world's largest, most successful e-commerce companies. During the next three to five years, analysts project annual growth rates of 15% for sales and 18% for EPS
. They also expect the stock to gain between 175% and 270% from the current price of around $31 per share.
I think these estimates are feasible because of eBay's size (it has a market capitalization
of $39.8 billion), strong brand and reputation, global presence and demonstrated willingness to evolve. The stock doesn't pay a dividend
and it can be very volatile, so be prepared for a bumpy ride. But if you're patient, you may have a chance at reliving the '90s by enjoying several years of good returns from this stock.
-- Tim Begany
Disclosure: Neither Tim Begany nor StreetAuthority, LLC hold positions in any securities mentioned in this article.