After first talking Dolby Laboratories, Inc. (NYSE:DLB) higher on the first segment of CNBC's MAD MONEY, Cramer said it is time to put away grudges on stocks. He thinks it's time to recommend eBay, Inc. (NASDAQ:EBAY).He thinks even though it is run by Meg Whitman, has weak user trends, spent too much on Skype, and yada, yada, yada ...
Under $32.00 he likes it, and he said he can whip himself that it is up $9.00 from lows. He thinks it is still down 25% and now represents and "internet value stock." He said the bad news has been discounted into the shares. It trades under 26 times next year's earnings but growing at 21%.
He said Bear Stearns has it right. He thinks PayPal is still winning over Google's checkout. He likes the Shopping.com angle, and that eBay can now bring in new customers this way. He even went as far as to say that while he's been slamming Meg Whitman, that she has been wheeling & dealing, including a pact with Yahoo! Inc. (NASDAQ:YHOO). He also likes the recent deal with Baidu.com that started in November.
He likes ratios, with no debt, and says the company has been hoarding cash, with $3.2B in the coffers. eBay closed down 2.7% at $31.30 in normal trading, but is up at $32.05 after the comments.
Do you think Cramer will auction off a dinner with himself like Warren Buffett did?
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Reader Comments (Page 1 of 1)
12-08-2006 @ 2:11AM
dimesy said...
Yeah, you'd think he was on the payroll.
12-08-2006 @ 3:10AM
Javaflash said...
I don't know... however, I believe, based on how he assesses the company, it's a pretty good guess that Cramer has never used eBay and Paypal.
12-08-2006 @ 6:00AM
jennie said...
thanks for this information
12-09-2006 @ 3:59AM
Brian Snale said...
Excuse me while I splutter my coffee all over the monitor!! I wonder if this is an attempt to bump the price before another bout of profit taking. Call me cynical, but I don't see any changes apart from the fact that eBay are being forced to run more and more Cheap Listing Days to combat the departure of sellers.
I think there will be another shakeout after the holidays, when more stores will close. More and more are becoming dissillusioned with the direction of the eBay corporation, and I'm sorry but I can see no golden glow on the horizon.
12-10-2006 @ 12:50AM
online auctions said...
His comment was obviously strong enough to get investors to buy stocks, etc.
12-10-2006 @ 11:42PM
Michael N. said...
Boo Yah! I love Cramer!
12-11-2006 @ 11:05AM
Nosy Rosy said...
With 3.6 billion of profits in their coffers why does eBay not pay it's shareholders dividends? Seems to me they could have raised the price of this stock a long time ago by announcing dividends. eBay has matured and is no longer like it was. A 5 percent increase per year is about all they can get from here on in. And if they have another terrible year in 2007, they can hang it up. Investors will only hold a stock so long and then they start dumping.... Investors want to see a profit on their money not talk, talk, talk. A dividend would be nice at this point!