eBay Inc (EBAY): It’s Hard To Find a Better Investment

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Google Inc (NASDAQ:GOOG) is the leader in the search market, being host to over 65% of the searches in the U.S. Google recently announced plans to sell off its Motorola Home unit to Arris for $2.3 billion, which is one of the many steps the search giant plans to undertake in an effort to restructure its Motorola Mobility acquisition. The continued losses in the Motorola unit in part led to Google’s 3Q earnings miss by 15%. Billionaire George Soros’ was one of Google’s biggest fans after adding the stock to his portfolio last quarter (check out George Soros’ new picks).

AOL, Inc. (NYSE:AOL) has transitioned into a media company offering a wide range of online content. Despite this, AOL still operates one of the largest Internet subscription access services in the U.S., giving it a tremendous cross-selling opportunity. AOL has some of the more interesting growth prospects of all the stocks listed, where its 5-year EPS annual growth rate is 115%. Couple this with the tech company’s 3.0x P/E and its PEG of 0.01, AOL is undoubtedly a ‘growth at a reasonable price’ opportunity.

Last but certainly not least, Microsoft Corporation (NASDAQ:MSFT) is a diversified products and services company with operations in mobile, PC, search and tablets. Revenues are expected to be up 9% in FY2013 and 7% in FY 2014 thanks in part to new Windows software, Office and Surface tablet releases. We continue to sing Microsoft’s praises, which pays investors a 3.4% dividend yield and trades with a PEG of close to 1.0. We believe the tech giant will continue to perform well given its diverse product portfolio that provides recurring revenue streams, but we also like its efforts to expand into tablets and mobile, the latter via a partnership with Nokia. David Einhorn was a big-name investor in Microsoft last quarter (see David Einhorn’s newest picks).

In short, we believe that eBay, in part being powered by PayPal, will continue to excel in the future and presents investors with a robust investment opportunity. For more related coverage, continue reading below:

Amazon: an underappreciated growth machine

Top 10 service stocks loved by hedge funds

Why is this hedge fund bearish on eBay?

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