An upgrade to Outperform from Wells Fargo helps eBay (EBAY +1%) recoup some of last week's...

An upgrade to Outperform from Wells Fargo helps eBay (EBAY +1%) recoup some of last week's post-earnings losses. The firm is pleased Marketplaces is now growing in-line with the broader e-commerce industry (previous), if not faster, and (in what isn't exactly a bold prediction) expects PayPal to "emerge as a winner and one of the biggest players in the [mobile] wallet space." The sell-side showed eBay plenty of love earlier this month, following its bullish analyst day forecasts.
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  • phomans
    , contributor
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    EBAY is as close to a "buy and hold" name as I can think of-they are the most technologically sophisticated and forward thinking of any of the credit and financial data processing companies in their sector. Their relationship with Points.COM, who provide travel miles, points, etc through a joint venture to millions of small-medium sized ($1,000,000-$2.5 bil in revenue) companies who understand the benefit in revenue growth provided by incentives (from which, for example, American Airlines last year made in EXCESS of $1 billion with no cash costs immediately associated with that $1 bil) but don't have the scale or the technological sophistication to do this themselves-EBAY's subsidiary, Magento, who builds electronic and physical storefronts which allow vendors to have their own generic incentive programs. Given that Paypal-EBAY's most profitable business-has 117 mil ACTIVE members, out of 330 mil total members, if they are successful, through their costs, Bill me Later, and Loyalty incentives in taking that 117 mil number to 200 or 300 mil, at very low cost to Paypal, generating enormous incremental margins.
    24 Apr 2013, 02:37 PM Reply Like
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