The "Power of 3" is what Meg Whitman calls eBay's (EBAY) 3 primary businesses -- marketplaces, payments and communications. Any way you slice it, the Power of 3 is working.
- For 2006, $6 billion in revenue, up 31%
- Purchased $1.0 billion in stock and is upping it to $2.0 billion -- eBay has never repurchased its stock prior to July 2006
- eBay has 220 million users and Skype is now up to 171 million users, both growing nicely
- Other eBay names that it owns or has interest in or relationships with are doing well like Shopping.com, Craigslist and VeriSign
Of the many positive points for eBay, the most important to drive this stock higher is that growth is now re-accelerating. Historically, large growth companies perform best when the growth rate picks up. The company is guiding to 18% to 21% growth for 1Q07, which appears too conservative.
Sometimes it is best not to think -- just buy and put a stock away. That is what investors should do with eBay.
January 25, 2007
No comments:
Post a Comment