The Good in eBay's 'Bad' News

Watch this eBay (EBAY - commentary - Cramer's Take). When news broke last night about how it is no longer going to go alone in China, the articles were written with a slant that this news would kill the stock. The first articles that hit the tape were about another bad blow for beleaguered eBay and I was thinking, oh man, I can't believe that the press is all over these guys still, given that there are now some positives on the horizon for eBay, mainly charging for Skype, big click-to-call deals with Yahoo! and Google, and a sense that Christmas has been pretty darned good for the company.

But when the stock didn't go down, the stories morphed into something about how a partnership may be better for eBay. My take is that eBay's not braindead and it is adjusting to make more money in China.

That's a good thing.

This is a company that is down 25% this year even as it might be enjoying a strong turnaround. My judgment is that this news could be a signal about how strong eBay's stock might be.

I believe Ebay bottomed in the mid-20s -- I missed the bottom by 5 points -- but I believe this stock is really quite right here for a move higher.

At the time of publication, Cramer was long Yahoo!.

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