eBay Stock Climbs on New Shipping Service to Compete With Amazon.com

NEW YORK (TheStreet) -- Shares of eBay   (EBAY) were climbing, up 0.66% to $59.54 in afternoon trading Thursday, as the online auction site plans to launch a new shipping service that rivals Amazon.com's  (AMZN) Prime service in Germany later this year called eBay plus, The Wall Street Journal reports.

Last November, eBay was exploring delivery options for customers in countries including the U.S. and Germany, according to Reuters.

The new eBay plus program will offer free, fast shipping and returns for customers who pay between 15 to 20 euros, or about $16.68 to $22.25 a year.

Plus, eBay-owned ticket marketplace company StubHub unveiled its updated iOS and Android mobile and tablet apps today.

The app will also feature new personalization tools and content partnerships to enhance the live-event discovery process for fans. 

StubHub teamed up with Disney's (DIS) ESPN to incorporate the sports network's content including game scores, team stats and stories. 

San Jose, Calif.-based eBay is a global technology company that enables commerce through reportable segments including marketplaces, payments and enterprise.

Separately, TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate EBAY INC (EBAY) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 126.9% when compared to the same quarter one year prior, rising from -$2,326.00 million to $626.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 4.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, EBAY INC's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: EBAY Ratings Report

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