E-Commerce Stock Watch: Is eBay a Buy?

The search is on for sticky sites, and that’s what makes eBay (Nasdaq: EBAY) a wise investment for America Online (NYSE: AOL). A sticky site is one that holds a user’s attention for an extended period of time. According to Media Metrix, eBay is one of the stickiest sites on the Web. In December, the average eBay user spent 27 minutes each day they visited the site, while a typical Web site holds visitors for an average of approximately five minutes per page.

Add that to the fact that the auction house has 16 million users, and is one of the small minority of Internet companies that’s actually turning a profit, and you can see why AOL is interested.

Should the individual investor also be interested? Well, it’s tough to recommend any stock that has a ridiculous price/earnings ratio of 3,900, but if you must invest in Internet stocks, stick to the sticky sites, and big brand names like eBay.

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