EBay (EBAY)

eBay's new management team has already broken one "sacred wall" with the announcement of category based pricing in media and it is clear to me that they want to make eBay.com a shopping portal, rather than strictly a shopping destination. So why not break another “sacred wall” and give sellers the ability to actually grow and build an online brand? In this scenario, eBay would be able to maintain their fee structure in each of their advertising venues (e.g CORE, PIF, Shopping.com, Sponsored Ads, Classifieds, etc.) and they would give ProStore sellers the ability to maximize their advertising dollars by building a brand and developing long-term relationships with their customers.

Once the ProStore seller has done business with a customer, it is up to them to work diligently to get them to return to their ProStore, where there is a minimal FVF and a fixed hosting fee. This gives ProStore sellers a huge advantage over any other webstore platforms (e.g Yahoo Stores, Amazon WebStore (AMZN), eCrater, Volusion, etc.) and sellers can finally gain a little control over their marketing expenses and their business. Most eBay sellers do not want to leave eBay, they just want to sell products and they are willing to pay eBay for the traffic, they just want to control their business. eBay management has the ability to make this happen right now and keep competition at bay

They got one of the most famous social bookmarking system, Stumble Upon and Skype.

Skype has a large and passionate fan base and is well positioned to take advantage of the new and evolving VoIP market. If "free" wi fi / white space is approved by the gov't, skype might just be the next "Tmobile", Verizon. That's a long shot but who knows.

PayPal's dominance in the online payment services market, and its integration with eBay, Skype, and other services, will help the company further monetize its properties.

PayPal is currently seeking to obtain a Banking license which will only help PayPal's growth and integration into the financial services.

With just over $4 billion swimming around in eBay’s bank account (and a further $2.3 billion in cash projected by the end of the year), the company plans to use it to fuel its overseas expansion - not a bad policy, given the depressed U.S. dollar. The firm just announced that it will spend $404 million to buy a stake in South Korean e-commerce company Gmarket. Pending approval from the authorities, this would not only help eBay expand in the busy Asian market, but also eat into some of the market share that Yahoo! (Nasdaq: YHOO) has built through its 40% holding in Alibaba Group and 10% share in Gmarket in 2006.

The company is one of the most well-known and popular names throughout many parts of the world and has built a rock-solid brand. Ease of use, an extremely diverse range of products, and efforts to boost customer interaction translates to customer loyalty and a lot of repeat business.

Over the years, the company’s robust business model has resulted in some outstanding gains for investors as a high-growth play on events like the Christmas shopping season and as a stock that offers protection during tougher times.

Its strong cash flow (almost $3 billion over the past 12 months) has provided security for shareholders, as has the management policy of consistently initiating large share buybacks in the event of downturns, returning this cash flow to investors. These buybacks prevented dilution from management stock option grants, but also supported the stock price.