eBay Inc (EBAY), Amazon.com, Inc. (AMZN): This E-Commerce Company Is Still Good for the Long Run

Overstock.com, Inc. (NASDAQ:OSTK) is another company that has an online marketplace.The company has been moving aggressively into the space of Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY). It recently cut the prices of books to levels 10% below Amazon. The company slashed prices on more than 300,000 titles, and this might lead to more heated competition in the space.

Also, a glance at Overstock.com, Inc. (NASDAQ:OSTK)’s growth rate for the next five years reveals a whopping expectation of 24% annual earnings growth. So it shouldn’t be a problem for investors to pay 31 times earnings for this company even if it trades at a higher multiple than eBay, since eBay’s expected earnings growth of 15% for the next five years is lower than Overstock’s.

Conclusion

eBay Inc (NASDAQ:EBAY), with its new retail interface and prompt delivery service, aims to be the leader in the e-commerce world. The company is taking up constant site development programs in order to deliver full customer satisfaction. With success in eBay Enterprises and Marketplaces, the company continues to earn from its settled business and expects to accomplish its goals in the near future.

It is facing tough competition in the market but looks to count on PayPal and in-store payments to perform even better. So investors should look beyond the short- term weakness and focus on the long term since eBay Inc (NASDAQ:EBAY) is still a solid company with growth ahead.

The article This E-Commerce Company Is Still Good for the Long Run originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.