Dipping a Toe Into eBay

Wall Street is taking a shine to eBay(EBAY Quote), even though investors continue to worry about its long-term growth prospects.

Analysts are expecting to see strong first-quarter results from the San Jose, Calif.-based company after the market closes Wednesday. Earnings are expected to hit 24 cents a share, up from 20 cents a year earlier, while sales should jump a healthy 34% to $1.39 billion, according to Thomson Financial.

Like other big-cap Internet stocks, eBay shares have been pounded this year. Investors have expressed concerns about the $2.6 billion price the company paid for Internet phone-provider Skype Technologies and over increased competition for online shoppers. Yet while those issues remain, for now they are being placed on the back burner by some on Wall Street. ...