For the past two years, eBay has managed to meet or beat analysts’ earnings estimates in each and every quarter, in most cases beating the estimates. This, coupled the 55% uptrend in its stock over the past 12 months, has stirred a lot of growth.
eBay’s growth story has been overdone. If anything, what we are seeing today is what many would call the tip of the iceberg. eBay’s growth story just begins; there is still much more to come.
PayPal’s role in eBay’s future growth cannot be overlooked. In the past quarter, sales from the PayPal unit grew 18% to $1.5 billion. And in fiscal 2012, PayPal accounted for 15% of the 1 trillion e-commerce transactions, processing transactions totaling to $145 billion.
On the other hand, eBay has put its focus into small business so as to ward off pressure from other competitors such as Amazon. eBay also keenly set its eyes on mobile. Since more and more consumers switch from PC to mobile to do online shopping.
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