EBay Inc (EBAY): Today's Featured Internet Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

eBay ( EBAY) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.6%. By the end of trading, eBay fell $0.84 (-1.6%) to $51.09 on average volume. Throughout the day, 15,415,167 shares of eBay exchanged hands as compared to its average daily volume of 11,960,400 shares. The stock ranged in price between $50.51-$51.54 after having opened the day at $51.29 as compared to the previous trading day's close of $51.93. Other companies within the Internet industry that declined today were: Net Element International ( NETE), down 5.3%, Wix.com ( WIX), down 4.7%, CGI Group ( GIB), down 4.2% and HealthStream ( HSTM), down 4.1%.

eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $66.5 billion and is part of the services sector. The company has a P/E ratio of 24.4, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Tuesday. Currently there are 25 analysts that rate eBay a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates eBay as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, China Finance Online ( JRJC), up 8.8%, LiveDeal ( LIVE), up 7.7%, 58.com Inc ADR repr Class A ( WUBA), up 6.5% and Youku Tudou Inc ADR repr Class A ( YOKU), up 6.3% , were all gainers within the internet industry with Facebook Inc Class A ( FB) being today's featured internet industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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