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.
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