eBay Inc (EBAY) Well-Set For a Rally As Apple Inc. (AAPL) Still Behind

Amid fears  that eBay Inc (NASDAQ:EBAY)‘s business is going to come under fire from Apple Inc. (NASDAQ:AAPL)’s new payment method, ebay’s stocks have been on a decline but now there are strong signs of a changing momentum. In his news article on Bloomberg, Oliver Renick writes about the imminent directional change in eBay Inc (NASDAQ:EBAY)’s stock price.

There are two aspects to consider as far as eBay Inc (NASDAQ:EBAY)’s rally is concerned. Firstly, an analysis on the basis of Apple Inc. (NASDAQ:AAPL)’s new product, Apple Pay, and secondly the evidence of a momentum building in favour of eBay Inc (NASDAQ:EBAY) from the options market.

While analysing the two products time is an important consideration. If Apple Inc. (NASDAQ:AAPL) is geared to gain a considerable market share in the next 15 years, it shouldn’t be too much of a concern for eBay Inc (NASDAQ:EBAY)’s investors owing to uncertainty attached to such a long time horizon.

According to Renick, analysts at Cantor Fitzgerald LP think that Apple Inc. (NASDAQ:AAPL)’s payment feature is marred by limitations. It only works on the latest devices from the manufacturer and lacks an international presence which eBay Inc (NASDAQ:EBAY)’s PayPal commands.

As far as signs of an impending directional reversal from the options market are concerned, the price levels on eBay Inc (NASDAQ:EBAY)’s call options tell a convincing story. Renick wrote that the calls betting on a 10% rise in eBay’s stock price reached their most expensive level last week on account of an increased demand.

eBay Inc (NASDAQ:EBAY) was down 6.8% since last August according to Renick as Apple Inc. (NASDAQ:AAPL) prepared to unveil its new products and uncertainty among the investors was at its height.

Down about  4.5% in 2014, eBay Inc (NASDAQ:EBAY) is lagging behind the 14 percent advance in technology stocks included in the S&P 500 Index, wrote Renick. It’s an ideal time for investor’s to cash in on eBay Inc (NASDAQ:EBAY)’s catching up with the market.

Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.