Benzinga recently spoke with Leav Graves, founder of Option Samurai, about eBay Inc EBAY 1.32%’s spinoff of digital payment company PayPal Holdings Inc PYPL 1.32%.
Graves discussed why he prefers PayPal over eBay, what he has seen in the options market since the PayPal spinoff and which big-name tech companies are his favorite names to buy right now.
PayPal Vs. eBay
Now that the highly-anticipated PayPal spinoff is in the books, which stock should investors hold going forward? Graves created a detailed infographic pitting the two stocks head-to-head.
Related Link: Citi: Buy PayPal
While PayPal’s valuation, including a forward price to earnings ratio of 29, is steep compared to eBay, Graves sees good reason for the disconnect.
“I’d rather hold PayPal, as it’s a leader in a growing industry,” Graves told Benzinga. “eBay still needs to find a new growth engine, and it is unclear what it will be.”
EBay is currently projecting 2015 revenue growth of 3-5 percent, while PayPal is projecting growth of 15-18 percent.
Options Advice
When Benzinga asked about the brand new PayPal options market, Graves issued…
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