eBay Rings in the Holidays with Mobile Boom

by Trefis Team
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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. [1] 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.

See our complete analysis for eBay

Mobile Should Accelerate e-Commerce Growth in Future

Given the +500% YoY increase in mobile payments for PayPal on Cyber Monday, it could not get any clearer that mobile would be the prime driver for e-commerce growth, which is still a single digit percentage of the total retail sales in the U.S.

While eBay may not have its own hardware platforms like Amazon’s Kindle Fire, PayPal’s aggressive expansion and product development in mobile payments should ensure that the division increasingly contributes more to eBay’s stock.  We currently have a price estimate of around $39 for eBay’s stock, which is about 35% above the current market price.

Source: eMarketer

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Notes:
  1. PayPal Blog: Mobile Holiday Shopping Continues Into Cyber Monday []
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