Is Ebay on its Way to an All Time High?
Monday, March 19, 2012 at 3:07PM
Last week while reading the Wall Street Journal, I came across an interesting statement and I tweeted this:
Multiple catalysts on name... WSJ: 11-year-old Xander Gansman, who sold his iPad 2 on eBay $EBAY +2.85% to raise money for the new device
It got me thinking. There will be more than 100,000,000 Ipads in circulation in 2013. That is many devices and I believe that the trading in these devices is about to explode on $EBAY and $AMZN as Ipad fanatics trade their old devices for the new new shiny. There is money in these devices and Ipad users will monetize it.
This weekend I decided to sell my son's DSi and my own Galaxy Tab (7 inches, original version) on Amazon.com to figure out how liquid the market is for these devices. We have four Kindle Fires in the family and the DSi and the Galaxy were gathering dust. We sold them in less than 24 hours.
The liquidity in the iPads must be significantly better. This will be big business for the marketplaces.
And now back to $EBAY, here is what I think will push the company towards an all time high within the next 2 years.
- iPad (and other devices) trading. Read what $EBAY has to say on the subject.
- Interest rates won't stay at zero forever. PayPal benefits from higher interest rates.
- Marketplace gaining traction with a better offering. Scot Wingo has this to say about $EBAY comp sales. Look at how nicely they are trending up.
- Motors is on fire and that should continue.
- I have never found $EBAY management to be inspiring but lately they seem to have become more focused on innovation than ever before.
- Paypal's entry in the card reading business.
Anything else that can move $EBAY in 2012?
Written by Michael Bigger. Follow me on Twitter and StockTwits.
Reader Comments (1)
Selling ipads on ebay is very liquid but i got burnt recently with the ipads lost in transit and a few people claiming not receiving the item... although i have signitures to prove they have. It's the expensive nature of these products that create this problem!
Profiable? Yes but not without its problems.