Monday, November 17, 2014

Carl Icahn's Increased Investment in Ebay Bodes Well for Investors

Carl Icahn has recently increased his stock position in Ebay shares.  This adds further credibility to the case for an Ebay investment right now.

In looking at this, we must remember the background from one of his recent Internet investments - Netflix.  He made a ton of money with Netflix stock (NFLX) and with this impressive track record, this bodes well for Ebay right now if he strikes again with a winner.

Adding further credence to a long position in Ebay, in my opinion, is the upcoming spin off of Paypal.  It is difficult for me to come up with a value for Paypal, as I do not feel that companies such as Mastercard and Visa provide a relevant benchmark.  Paypal is primarily (currently) an online payment based system.  An exciting addition to this is that online sales are growing much more rapidly than brick and mortar store sales.

To this extent, I believe companies like Mastercard and Visa are more mature in their markets, and feel that the Paypal stock will rise tremendously over time.

Disclosure, I am long EBAY.

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