This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rising Tide at eBay

The conventional wisdom that investors should avoid e-commerce companies in favor of Internet media names hasn't panned out lately.

In fact, shares of eBay (EBAY - Get Report) and Amazon (AMZN - Get Report) each rose more than 17% in August. Though both stocks are down substantially for the year, last month they outperformed Google (GOOG - Get Report), which rose less than 1%, and Yahoo! (YHOO - Get Report), which gained 7%.

Another e-commerce stock, IAC/InterActiveCorp (IACI), the parent of the HSN cable-shopping channel, jumped 13%. During that same period, the Nasdaq Composite index jumped 5.9%.

This may signal a change in fortune for these stocks, which still are out of favor with analysts, who caution against reading too much into these price moves. Indeed, eBay and Amazon are both down more than 30% this year, while IAC is little changed.

"There is a price where any stock becomes attractive, especially ones with powerful brand names and significant share," says Darren Chervitz of Jacob Asset Management, which owns shares of Google, Yahoo! and eBay among its $75 million in assets under management. "If the consumer stays healthy, then we are entering the best months for these companies. The stock prices usually anticipate that."

Though the growth of e-commerce is slowing, it's still pretty strong. JupiterKagan estimates that online retail sales will reach $95 billion this year, up 18% from last year. That compares with a 4.7% jump in overall retail sales projected by the National Retail Federation.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $422.87 0.00%
EBAY $59.30 0.00%
GOOG $537.90 0.00%
YHOO $42.51 0.00%
AAPL $128.95 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs