Cramer is Now Backing eBay
After first talking Dolby (DLB) higher on the first segment of CNBC’s MAD MONEY, Cramer said it is time to put away grudges on stocks. He thinks it’s time to recommend eBay (EBAY).
He thinks even though it is run by Meg Whitman, has weak user trends, spent too much on Skype, and yada, yada, yada…………
Under $32.00 he likes it, and he said he can whip himself that it is up $9.00 from lows. He thinks it is still down 25% and now represents and “internet value stock.” He said the bad news has been discounted into the shares. It trades under 26 times next year’s earnings but growing at 21%.
He said Bear Stearns has it right. He thinks PayPal is still winning over Google’s checkout. He likes the Shopping.com and now you can bring in new customers this way. He even went as far as to say that while he’s been slamming Meg Whitmas that she has been wheeling & dealing including a pact with Yahoo!. He also likes the recent deal with Baidu.com that started in November.
He likes the $3.2B cash and no debt, plus the company is hording cash. EBAY closed down 2.7% at $31.30 in normal trading, but is up at $32.05 after the comments.
Do you think Cramer will auction a dinner off with himself liek Warren Buffett did?
Jon C. Ogg
December 7, 2006