
Toasty Performance in a Burning Market
Fools! You think a little trade war can scorch EBay? I Scorpion have faced Sub Zero's chill and Quan Chi's sorcery! EBay unlike some shivering ninjas is not raising prices. The trade winds may howl but this online marketplace stands firm a fortress against the storm. Some say chaos breeds opportunity. EBay thrives because even when realms collide people still seek bargains! GET OVER HERE... and invest!
Multi Year Highs? EXCELLENT!
The chart speaks volumes Mortal. EBay is ascending like I rise from the Netherrealm hotter than ever! In good times the masses buy trinkets. In lean times they sell their dusty relics. EBay benefits either way a true testament to its market prowess. It has been growing consistently and resiliently in both good economic conditions and bad. When times are good people are buying more merchandise. When the economy softens there is an increase in people wanting (or needing) to sell things.
Fatality... To Overpriced Stocks!
Sean wise kombatant notes EBay's financial strength. A 13% surge this year outperforming most of its rivals is impressive even by my standards. And with a price to earnings ratio lower than a Lin Kuei's spine EBay is a steal! While EBAY trades at these valuations the consumer discretionary sector trades at a 20x P\u002FE EBAY's industry classification (internet retail) trades at a 23x P\u002FE and the S & P 500 in its entirety trades at a 24x trailing PE according to YCharts data.
Iannone's Gambit: Navigating the Tariff Labyrinth
The CEO Jamie Iannone speaks of tariffs with the coolness of Sub Zero. Most of EBay's China to U.S. goods are already prepared for these burdens or cleverly routed via SpeedPAK a shipping solution that handles the tariff complexity and customs complexity right into the shipping solution. EBay adapts and survives! Their Greater China to U.S. quarter makes up about 5% of total GMV for them. And China overall is a little less than 10%. But about 3/4 of that business of the 5% coming from China to the U.S. is forward deployed to the end markets. So it's already subject to tariffs and so wouldn't be subject to any changes in de minimis based on the cost of the items. On the other half of the inventory or the 1 quarter that's not forward deployed about 50% of that uses a shipping solution that we've helped create which is called SpeedPAK. And what that does is it really incorporates all of the tariff complexity and customs complexity right into the shipping solution.
The Numbers Don't Lie: 13% Below All Time Highs and Climbing
Amazon may boast about revenue but EBay's China numbers are lean and mean only accounting for 11% of revenue! This is a calculated advantage. EBay is now 13% below all time highs and climbing so now is the time to strike! You want durability? Here it is! Ebay has been forming support along its rising 50 day moving average while remaining a value stock in a growing sector.
Risk Management: The 200 Day Moving Average
The rising 200 day moving average is EBay's support. Should it dip below retreat like a defeated Shokan. But while the price remains above press your advantage Mortal. As long as the price is above that level EBAY is risk on! REMEMBER THIS! And for the love of the Elder Gods read the fine print and disclaimers. I Scorpion take no responsibility for your financial fatalities. But if you invest wisely perhaps you too can afford a Shirai Ryu fortress... or at least a new set of chains.
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