The Western Union Company (WU), Xoom Corp (XOOM), eBay Inc (EBAY): Forget Bitcoin, Buy These Money Transfer Stocks

Page 2 of 2

Hidden Value

Another option to consider is eBay Inc (NASDAQ:EBAY). Although the company’s auction business is what it is best known for, its PayPal offering is one of the de facto “currencies” on the Internet. PayPal started as a currency alternative to paying for eBay Inc (NASDAQ:EBAY) auctions by acting as a middle man between banks and eBay Inc (NASDAQ:EBAY).

PayPal, however, can now be used as payment at most online retailers and the company is trying to work its way into brick and mortar stores, too. Representing around 40% of eBay Inc (NASDAQ:EBAY)’s top-line in 2012, this is the business that’s been driving the company’s growth of late.

A price to earnings ratio of around 28 is a little on the pricey side, so value investors shouldn’t look here. However, if PayPal can successfully transition into the physical world, there’s notable growth potential. That’s particularly true since Visa Inc (NYSE:V) and MasterCard are largely viewed as necessary evils by most retailers. Recent weak results are a worry, but shouldn’t stop you from looking at the stock.

Don’t Play Games With Money

There’s little to gain in jumping aboard an ETF backed by a suspect currency when you can invest in companies that move money legally, are well respected, and have growing businesses. Avoid the latest Winklevoss publicity stunt and its inherent risks. Look at The Western Union Company (NYSE:WU), Xoom Corp (NASDAQ:XOOM), and eBay Inc (NASDAQ:EBAY) instead.

The article Forget Bitcoin, Buy These Money Transfer Stocks originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends eBay and Western Union. The Motley Fool owns shares of eBay. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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

Page 2 of 2