Articles for eBay

Paypal at 20% of Ebay’s Stock, Lifts Outlook

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Tuesday, January 24th, 2012 by

eBay’s (NASDAQ:EBAY) results were positively impacted by strong growth in its payments segment PayPal as we discussed in a recent note. The company also enjoyed a large top-line upside to its GMV (Gross Merchandise Volume) and TPV (Total Payment Volume) metrics for the last quarter, which grew by 10% and 29% respectively. Looking ahead, we expect PayPal’s contribution to eBay’s stock to increase, standing at around 23% by our current estimates.

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eBay Q4 Earnings Preview: PayPal in the Limelight

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Wednesday, January 11th, 2012 by

While eBay (NASDAQ:EBAY) benefited from the bumper holiday shopping season, its 2011 results due on January 18th, are expected to be a mixed bag when compared to online retail giant Amazon (NASDAQ:AMZN). PayPal has been a winner in terms of revenue growth, clocking in at around 23%-29% for the first nine months of 2011. However, Amazon’s online retail has left eBay’s marketplaces far behind in terms of growth.

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Thompson Departure Weighs on eBay as PayPal Growth Picks Up

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Monday, January 9th, 2012 by

eBay (NASDAQ:EBAY) investors will undoubtedly feel the void created by the departure of PayPal head Scott Thompson. While Yahoo (NASDAQ:YHOO) hopes for a turnaround under Thompson, eBay’s shares slipped by around 3% when the news broke. PayPal continues to increase its contribution towards eBay’s stock, which stands at over 18% by our estimates.

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eBay Headed to $39, Beefs up Payments Segment with BillSAFE

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Monday, December 26th, 2011 by

eBay (NASDAQ:EBAY) strengthened PayPal further through another technology purchase. With the acquisition of BillSAFE, the company will now incorporate the “purchase on invoice” technology, which is preferred as the secure method of payments in European countries. We also expect that the company could soon implement this mode of payments in its other markets as well. eBay competes in the e-commerce space with companies like Amazon (NASDAQ:AMZN) and Alibaba.

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‘Tis the Season for eBay: Upside to $37 Fair Value Warranted

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Thursday, December 8th, 2011 by

By now you’ve probably heard that the Holiday buying season started off with a bang on Black Friday, and was followed with more positive news from consumers on Cyber Monday. Not surprisingly eBay (NASDAQ:EBAY), Amazon (NASDAQ:AMZN) and other online retailers saw a huge jump too. What may surprise some investors was the fantastic November eBay announced. An 18% jump in year-over-year sales for the month, along with a solid start to the Holidays has investors cheering. Especially considering this comes on the heels of a 13.4% year-over-year jump in October.

The company’s sales increases have not gone unnoticed by investors, starting the week with a bang. But even with the recent 5% jump in price, the stock remains well below the Trefis target of $38.68 a share. And with some of the recently announced changes, upward revisions may be warranted.

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eBay Rings in the Holidays with Mobile Boom

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Thursday, December 1st, 2011 by

eBay’s (NASDAQ:EBAY) payment platform PayPal saw a huge jump in mobile payments for the holiday shopping season. The mobile payment volume on Cyber Monday 2011 saw a whopping six-fold increase over the comparable time last year. The company has gauged the mobile revolution well in time with strategic acquisitions like Zong, and PayPal should continue to remain its fastest growing segment for the remaining year. eBay competes in the e-commerce space with companies like Amazon (NASDAQ:AMZN) and Alibaba.

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eBay Could Get Some Holiday Cheer with Mobile Sales, $39 Fair Value

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Monday, November 28th, 2011 by

Despite retailers gunning for a lucrative Christmas shopping season, grim economic conditions in the U.S. and Europe have weighed on sentiment for e-commerce giants like eBay (NASDAQ:EBAY) and Amazon (NASDAQ:AMZN) as concerns over consumer spending persist. Sales this past Black Friday were up 6.6% vs. a year ago lifting the outlook for holiday spending. Online sites were a big winner netting around 40% of total sales and 10% were on mobile devices.  eBay continues to bolster its online shopping experience through a strategic acquisition of recommendation engine Hunch, as well as further enhancements to its mobile shopping segment that will benefit the site this holiday season.

See our complete analysis for eBay

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eBay Snaps Up Hunch’s Taste Graph Technology for Predictive Marketing

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Monday, November 21st, 2011 by

This morning eBay (NASDAQ:EBAY) announced that it acquired Hunch (hunch.com) to tap the company’s expertise in machine learning, data mining and predictive modeling for consumer behavior. This technology helps tailor data for customers based on user feedback and ratings as well as the users activity on social networks such as Facebook and Twitter. With this information, Hunch builds a customized “taste graph” the user might like such as music, restaurants and brands. With this move, eBay looks to be making a more concerted push into predictive marketing, which is something that Amazon has done very successfully. As secondary benefits Hunch also brings a social networking angle and relies heavily on the mobile users which could help eBay expand its mobile reach. More directly, this move helps eBay compete with the likes of Amazon (NASDAQ:AMZN) in e-commerce and Google (NASDAQ:GOOG) and Facebook in the social networking domain.

See our complete analysis for eBay

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eBay Gears Up its Mobile Arsenal for the Holiday Season

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Friday, November 18th, 2011 by

While reports on low consumer confidence in the U.S. gave some jitters to eBay (NASDAQ:EBAY) stock, the company is betting big on its mobile division to deliver goods this shopping season amid increasing competition from Google (NASDAQ:GOOG). eBay has gone so far as to launch its own “Mobile Manifesto” in the U.K. this week, a document that urges mobile companies and governments to work toward improving mobile networks to promote e-commerce.

See our complete analysis for eBay

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