NEW YORK ( TheStreet) -- eBay ( EBAY) will report its quarterly earnings results after the close on Wednesday.
TheStreet's Jim Cramer told Debra Borchardt that neither eBay's Marketplace or PayPal are the only shops in town anymore. The two dominated their respective fields for a long time but increased competition is a cause for concern. Cramer said his charitable trust, Action Alerts PLUS, sold its position in eBay because of the stock's frustrating price action and lack of conviction by shareholders. Cramer suggested that if analysts feel Square and MoBeam aren't taking market share from PayPal, then an upgrade should send the stock higher. However, he stressed that if analysts have any whiff of doubt, they could downgrade eBay -- something that has hammered the stock price in the past. The company is also second behind online retail giant Amazon ( AMZN) in terms of its Marketplace business segment. Cramer concluded those who believe in eBay's upside can buy the $55 call options, while those who don't can buy the $50 put options. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell