EBAY INC. $53 (Nasdaq symbol EBAY; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 1.2 billion; Market cap: $63.6 billion; Price-to-sales ratio: 4.0; No dividends paid; TSINetwork Rating: Above Average; www.ebay.com) has signed a deal with Russia Post that will speed up delivery of foreign goods Russian buyers purchase on eBay’s websites.
As well, eBay will soon launch a website in Russia that will let domestic merchants sell more of their goods online.
Expanding in Russia adds risk, particularly as the U.S. and Europe plan to impose new economic sanctions against the country in response to its annexation of Crimea. However, Russia only accounts for a small fraction of eBay’s revenue and earnings.
eBay is a buy.