eBay Investor - Seeking Alpha 'eBay Investor' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/ebay-investor eBay's Latest Earnings: Steady as She Goes http://seekingalpha.com/article/168174-ebay-s-latest-earnings-steady-as-she-goes?source=feed 168174 It’s that time again, quarterly earnings were released today (conference call link here). Let’s see how we’re doing.
To Recap: Last quarter eBay begun to see glimmers of hope with its business. They had their first quarter over quarter growth in 6 months and seemed to be reversing the trend of contracting overall revenues. Many investors were biting their nails today to see if that was just an anomaly or if John Donahoe’s turnaround strategy was working. Today’s quarterly earnings announcement shows that while there is a long way to go, eBay has definitely turned around.
The new standard bearer:
A lot of people have missed that eBay has repositioned PayPal as their new flagship business unit. eBay might as well change their stock ticker back to PYPL to more accurately illustrate this. Once again, Paypal’s growth and profits were stellar. Even during the deepest darkest pits of the financial crisis and recession, PayPal continued to not only deliver but gain market share. 15% growth (19% if you take into account the weak dollar) and 19% (23% again if you take into account exchange rates) of Total Payment Volume (TPV) are numbers any large cap would die for. Bill Me Later’s integration with PayPal and eBay should also help the top and bottom line in the future. eBay’s not stopping here either, in today’s earnings call, eBay expressed it’s plans to DOUBLE PayPal’s business by 2011. That’s 5.5 billion in revenue. That's a tall order, but if PayPal is performing this well in this economy, if/when the economy picks up - PayPal will be well positioned to deliver.
PAYPAL REVENUE
click to enlarge

Core Marketplaces
This is where eBay has been hurting most, marketplaces is where the trouble started and still continues to be a challenge. Donahoe’s new strategy however seems to be working (however slowly.)
MARKETPLACE REVENUE

Marketplaces generated 1.365 billion in revenue for the quarter. While it still represents a 1% decrease in year-over-year revenue, it does represent the second quarter of real sequential growth quarter to quarter. The most important factor here to consider is they’ve stopped the contraction, and squeezed out growth 2 quarters in a row now.
Skype it to me.
The news that Skype was sold for a value of 2.7 Billion was welcome news to many eBay investors. It has become obvious that it is tangential to eBay’s business. However, today’s results have illustrated why somebody would buy Skype in the first place. Skype is a good business. 8% quarterly sequential growth and 29% year over year growth are very healthy numbers. Given current trajectory, Skype is conservatively estimated to book 700 million in revenue for 2009. Based on comments made in the past, we would expect a net gross profit around 100 million. These are respective numbers, and with growth still solid – Skype should prove to be a boon to eBay in the future with their 1/3 stake.
SKYPE REVENUE

Sour Christmas Forecast
eBay gave a very conservative forecast for their 4th quarter – basically a flat outlook. eBay is known for giving very conservative forecasts, and today’s future estimate is no exception. I believe the reason for this is Donahoe knows there are still very powerful headwinds blowing against eBay. There is increased competition, the weak dollar, and no guarantee his new policies will continue to work. Marketplaces are at a crucial point, even with growth from PayPal. In order for eBay to really start firing on all cylinders, they need to reignite marketplaces.
Disclosure: Author holds a long position in EBAY.
]]> Wed, 21 Oct 2009 23:01:35 -0400 eBay Investor eBay Investor submits:
It’s that time again, quarterly earnings were released today (conference call link here). Let’s see how we’re doing.
To Recap: Last quarter eBay begun to see glimmers of hope with its business. They had their first quarter over quarter growth in 6 months and seemed to be reversing the trend of contracting overall revenues. Many investors were biting their nails today to see if that was just an anomaly or if John Donahoe’s turnaround strategy was working. Today’s quarterly earnings announcement shows that while there is a long way to go, eBay has definitely turned around.
The new standard bearer:
A lot of people have missed that eBay has repositioned PayPal as their new flagship business unit. eBay might as well change their stock ticker back to PYPL to more accurately illustrate this. Once again, Paypal’s growth and profits were stellar. Even during the deepest darkest pits of the financial crisis and recession, PayPal continued to not only deliver but gain market share. 15% growth (19% if you take into account the weak dollar) and 19% (23% again if you take into account exchange rates) of Total Payment Volume (TPV) are numbers any large cap would die for. Bill Me Later’s integration with PayPal and eBay should also help the top and bottom line in the future. eBay’s not stopping here either, in today’s earnings call, eBay expressed it’s plans to DOUBLE PayPal’s business by 2011. That’s 5.5 billion in revenue. That's a tall order, but if PayPal is performing this well in this economy, if/when the economy picks up - PayPal will be well positioned to deliver.
PAYPAL REVENUE
click to enlarge

Core Marketplaces
This is where eBay has been hurting most, marketplaces is where the trouble started and still continues to be a challenge. Donahoe’s new strategy however seems to be working (however slowly.)
MARKETPLACE REVENUE

Marketplaces generated 1.365 billion in revenue for the quarter. While it still represents a 1% decrease in year-over-year revenue, it does represent the second quarter of real sequential growth quarter to quarter. The most important factor here to consider is they’ve stopped the contraction, and squeezed out growth 2 quarters in a row now.
Skype it to me.
The news that Skype was sold for a value of 2.7 Billion was welcome news to many eBay investors. It has become obvious that it is tangential to eBay’s business. However, today’s results have illustrated why somebody would buy Skype in the first place. Skype is a good business. 8% quarterly sequential growth and 29% year over year growth are very healthy numbers. Given current trajectory, Skype is conservatively estimated to book 700 million in revenue for 2009. Based on comments made in the past, we would expect a net gross profit around 100 million. These are respective numbers, and with growth still solid – Skype should prove to be a boon to eBay in the future with their 1/3 stake.
SKYPE REVENUE

Sour Christmas Forecast
eBay gave a very conservative forecast for their 4th quarter – basically a flat outlook. eBay is known for giving very conservative forecasts, and today’s future estimate is no exception. I believe the reason for this is Donahoe knows there are still very powerful headwinds blowing against eBay. There is increased competition, the weak dollar, and no guarantee his new policies will continue to work. Marketplaces are at a crucial point, even with growth from PayPal. In order for eBay to really start firing on all cylinders, they need to reignite marketplaces.
Disclosure: Author holds a long position in EBAY.

Complete Story »]]> EBAY eBay Investor eBay: Essential Data http://seekingalpha.com/article/152800-ebay-essential-data?source=feed 152800 eBay Getting its Groove Back?

Investors have been very optimistic about eBay’s prospects. Today the stock is hovering around $22.00 – more than doubling since it’s March 9th low of $9.91. eBay’s 2nd quarter earnings looked promising and the metrics look like eBay is finally capitalizing on the weak economy.

]]> Fri, 31 Jul 2009 05:10:43 -0400 eBay Investor eBay Investor submits:

eBay Getting its Groove Back?

Investors have been very optimistic about eBay’s prospects. Today the stock is hovering around $22.00 – more than doubling since it’s March 9th low of $9.91. eBay’s 2nd quarter earnings looked promising and the metrics look like eBay is finally capitalizing on the weak economy.


Complete Story »]]> EBAY eBay Investor eBay Is Finally Stabilizing http://seekingalpha.com/article/150737-ebay-is-finally-stabilizing?source=feed 150737 It’s been a while since I’ve written about eBay (EBAY). My previous articles have been very bullish on the prospects of eBay. Since those articles, eBay dipped to a low March 9th low of $9.91, but has since enjoyed a tremendous rally and more then doubled to settle at yesterday’s closing price of $20.37.

I wanted to review yesterday’s quarterly report in the context of this rally and assess the condition of the patient. (See Q2 conference call transcript here.)

]]> Thu, 23 Jul 2009 04:41:41 -0400 eBay Investor eBay Investor submits:

It’s been a while since I’ve written about eBay (EBAY). My previous articles have been very bullish on the prospects of eBay. Since those articles, eBay dipped to a low March 9th low of $9.91, but has since enjoyed a tremendous rally and more then doubled to settle at yesterday’s closing price of $20.37.

I wanted to review yesterday’s quarterly report in the context of this rally and assess the condition of the patient. (See Q2 conference call transcript here.)


Complete Story »]]> EBAY eBay Investor The SKYpe Is Not Falling http://seekingalpha.com/article/117647-the-skype-is-not-falling?source=feed 117647 I’ve written before about the amazing potential of one of the most maligned and misunderstood acquisitions in my recent memory. eBay’s (EBAY) purchase of Skype has been unanimously decried with such words as “irrational” and “foolish.”

With such negativity, one must assume Skype is a dying, unprofitable, debt laden business!

]]> Fri, 30 Jan 2009 08:38:27 -0500 eBay Investor eBay Investor submits:

I’ve written before about the amazing potential of one of the most maligned and misunderstood acquisitions in my recent memory. eBay’s (EBAY) purchase of Skype has been unanimously decried with such words as “irrational” and “foolish.”

With such negativity, one must assume Skype is a dying, unprofitable, debt laden business!


Complete Story »]]> EBAY eBay Investor Why 'GooBay' Makes Sense http://seekingalpha.com/article/116144-why-goobay-makes-sense?source=feed 116144 Yes, this is yet another article about why company A should merge with company B. I hope what this article lacks in originality will be more than made up for with plain old common financial sense.

It’s Good To Be King

]]> Fri, 23 Jan 2009 05:29:45 -0500 eBay Investor eBay Investor submits:

Yes, this is yet another article about why company A should merge with company B. I hope what this article lacks in originality will be more than made up for with plain old common financial sense.

It’s Good To Be King


Complete Story »]]> EBAY GOOG eBay Investor The Skype's the Limit http://seekingalpha.com/article/101932-the-skype-s-the-limit?source=feed 101932 eBay's (EBAY) acquisition of Skype in 2005 has been one of the many controversial moves eBay has been recently making. The purchase was originally marketed as the missing piece to create the holy trinity in eBay's hallowed e-commerce halls (along with eBay's auction sites and PayPal.) The thinking was that Skype would accelerate transactions among strangers as they communicated to each other more efficiently. eBay later found out that people are more interested in buying/selling quickly then chatting it up about those transactions.

Consequently, Skype did not live up to all the hype, and eBay has been paying for the acquisition ever since. So the question remains, eBay goofed – but how bad? How bad is Skype? I think if you look at their performance; you'll find surprisingly that Skype is not bad at all…

]]> Sun, 26 Oct 2008 06:54:08 -0400 eBay Investor eBay Investor submits:

eBay's (EBAY) acquisition of Skype in 2005 has been one of the many controversial moves eBay has been recently making. The purchase was originally marketed as the missing piece to create the holy trinity in eBay's hallowed e-commerce halls (along with eBay's auction sites and PayPal.) The thinking was that Skype would accelerate transactions among strangers as they communicated to each other more efficiently. eBay later found out that people are more interested in buying/selling quickly then chatting it up about those transactions.

Consequently, Skype did not live up to all the hype, and eBay has been paying for the acquisition ever since. So the question remains, eBay goofed – but how bad? How bad is Skype? I think if you look at their performance; you'll find surprisingly that Skype is not bad at all…


Complete Story »]]> EBAY eBay Investor eBay: Getting Something for Nothing http://seekingalpha.com/article/100598-ebay-getting-something-for-nothing?source=feed 100598 In my first post I had made the point that investors have un-fairly punished the whole of eBay (EBAY) for its struggling core site. I pointed out that eBay is now made up of a lot more then just auctions and their healthy high growing properties are now suffering "guilt by association."

Paypal is sleeping with the enemy

]]> Sun, 19 Oct 2008 07:36:54 -0400 eBay Investor eBay Investor submits:

In my first post I had made the point that investors have un-fairly punished the whole of eBay (EBAY) for its struggling core site. I pointed out that eBay is now made up of a lot more then just auctions and their healthy high growing properties are now suffering "guilt by association."

Paypal is sleeping with the enemy


Complete Story »]]> EBAY eBay Investor eBay in the Basement - But Not for Long http://seekingalpha.com/article/100437-ebay-in-the-basement-but-not-for-long?source=feed 100437 Make no mistake about it. The current market sentiment has largely written off eBay (EBAY) as a failing business. Lower GMVs (Gross Market Value), stalled user growth (at 3% Y/Y), economic downtrends, new radical changes to the core site, and extreme competition from other sites like Amazon (AMZN) are all putting unprecedented pressure on eBay.

With so many negative forces, it’s no surprise that eBay is being thrown in the dumpster.

]]> Fri, 17 Oct 2008 07:39:52 -0400 eBay Investor eBay Investor submits:

Make no mistake about it. The current market sentiment has largely written off eBay (EBAY) as a failing business. Lower GMVs (Gross Market Value), stalled user growth (at 3% Y/Y), economic downtrends, new radical changes to the core site, and extreme competition from other sites like Amazon (AMZN) are all putting unprecedented pressure on eBay.

With so many negative forces, it’s no surprise that eBay is being thrown in the dumpster.


Complete Story »]]> EBAY eBay Investor