Other online sellers offer a wide variety of the features eBay enjoys. Google and Amazon have their payment systems, but nowhere near the scale of PayPal. The market is growing in proprietary payment systems at the expense of the traditional credit card companies Visa and MasterCard.

This quarter's report is the fun one. The fourth quarter is when the money really flows and investors should expect another beat. I believe eBay will beat by at least 3 cents, and guidance will be relatively favorable. Any macroeconomic events and/or changes will likely impact upon every online retailer relatively the same. With that in mind, as long as you want to be in this space, eBay is a great way to gain exposure.

Looking at eBay from a technical analysis view gives even more reason to remain bullish. The chart is easy to figure out. Display a weekly chart and the price action clearly moves from the bottom left to the upper right. How much easier can it get than that? Of course, it's logical to ask the next question: "Is the price too far extended?" I believe the odds favor the shares continuing at least into the earnings release.

Yahoo! already tried and failed at auctions. Don't expect another go at it again anytime soon. Even if it does try, it's unlikely to gain the critical mass needed to succeed.

Google is always a challenge and possibly the biggest worry. Google doesn't have to offer auction sales, it could simply offer merchants a free and promoted sales environment.

Short-sellers are not interested in betting against this one. Short interest is a non-factor at a rate of 1.2% of the float.

EBAY Revenue Quarterly Chart EBAY Revenue Quarterly data by YCharts

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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