Thu, Jun. 11, 3:22 AM
- New York law enforcement officials have written to eBay (NASDAQ:EBAY) and PayPal (Pending:PYPL) this week, saying the companies' revised user policies "raise issues" under consumer protection laws, NYT reports.
- The updated user agreements would allow the two companies to call or text their combined 322M users for offers and promotions, to collect a debt or to poll their opinions through questionnaires.
- Ebay's new user agreement is scheduled to take effect on Monday and PayPal's will become effective on July 1.
Mon, Jun. 8, 11:14 AM
- eBay (EBAY -2.5%) forecasts its Marketplaces ops will see just 0%-5% constant currency revenue growth in both 2015 and 2016. PayPal is expected to see 15%-18% constant currency growth in 2015, and ~15% annual growth in the "medium term."
- Marketplaces guidance: Marketplaces' EPS growth is expected to exceed revenue growth in 2016 and later (no 2015 forecast is given). eBay sees the business posting free cash flow of $2.1B-$2.3B in 2015, and $2.3B-$2.5B in 2016. Op. margin is expected to be roughly flat long-term relative to 2015 and 2016 target ranges of 32%-34% and 31%-35%.
- PayPal guidance: PayPal is expected to see 2015 free cash flow of $1.6B-$1.8B, and FCF growing in-line with revenue in the medium term. Forex-adjusted payment volume growth is expected to be in the mid-20s in both 2015 and the medium term. Op. margin is forecast to be at 20%-21% in 2015, and be "stable to growing" in the medium term.
- Piper's Gene Munster (Underweight rating) observes the Marketplaces guidance is below Street forecasts. and the PayPal guidance in-line. The PayPal spinoff remains set to occur in 2H15.
- For reference, eBay's Marketplaces revenue fell 4% Y/Y (in actual dollars) in Q1 to $2.07B, with GMV declining 2%. PayPal division revenue rose 14% to $2.11B, with payment volume rising 18%.
- Marketplaces slides. PayPal slides.
Tue, Jun. 2, 5:35 PM
- Under a new program called Fulfillment by Amazon Small and Light, the e-commerce giant will provide free shipping for many popular items weighing 8 ounces or less, including ones whose prices fall well short of Amazon's (NASDAQ:AMZN) standard $35 minimum requirement for free shipping to non-Prime customers.
- Items covered by the program will arrive in 4-8 business days. Most of the items will be provided by 3rd-party merchants relying on Amazon's fulfillment services.
- To a large extent, the move takes aim at EBAY, which does considerable business handling sales of small/low-cost goods that come with free shipping. As it is, Amazon (both via direct and 3rd-party sales) has been grabbing share from eBay's Marketplaces ops for a number of quarters.
- Last week, Amazon announced it's providing free same-day delivery to Prime subs in 14 major U.S. metro areas.
Tue, May 26, 1:32 PM
- eBay's (EBAY -1.4%) is launching Promoted Listings, an ad format that guarantees sellers receive placement on the first page of product search results. Notably, eBay will only charge sellers when an ad click leads to a sale.
- Sellers will be able to bid 1%-20% of a product's final sale price for search keywords. The ads, which will begin appearing on a limited basis in June, will also differ from prior eBay ad formats in their reliance on structured data such as SKUs to guarantee a product ad is tied to a relevant search.
- eBay exec Alex Linde: "[T]here’s no upfront risk for the seller ... The only lever these sellers had in the past was price, and nobody wants to grow only by discounting." He adds eBay is also exploring ways for larger merchants to better promote special deals.
- Alibaba has long relied heavily on search ads to monetize its Chinese marketplaces, and Etsy has also embraced promoted listings. eBay, meanwhile, has been spending on Google's product listing ads (PLAs) to drive merchant sales.
- eBay is coming off a Q1 in which its Marketplaces revenue fell 4% Y/Y to $2.07B; a strong dollar took a toll, as did share loss to Amazon and others. GMV fell 2% to $20.2B.
Thu, May 21, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Thu, May 21, 2:58 AM
- eBay (NASDAQ:EBAY) is testing an Amazon (NASDAQ:AMZN) Prime-like program in Germany that it plans to roll out more broadly in the country later this year, although it's still not clear if it would introduce the service elsewhere.
- The offering, known as eBay+, promises free, fast shipping and returns for customers who, according to local press in Germany, pay €15 to €20 a year.
- Related: Wal-Mart details its Amazon Prime rival: $50/year unlimited shipping (May. 13 2015)
Tue, May 19, 6:31 PM
- PayPal (NASDAQ:EBAY) will pay $15M in consumer refunds and $10M in civil penalties to settle a complaint from the Consumer Financial Protection Bureau (CFPB) alleging its e-commerce credit service (now known as PayPal Credit, previously known as Bill Me Later) signed up customers without permission (leading them to incur interest/late fees), directed users to the service instead of other payment methods, and mishandled billing disputes. (the complaint - .pdf)
- PayPal has also agreed to improve its disclosures. The company isn't admitting or denying any of the CFPB's allegations.
- Earlier this year, eBay sold an 85% interest in a pool of U.S. credit receivables. CFO Robert Swan stated on the Q1 CC (transcript) the move will "free up approximately $700 million of incremental capacity in the U.S. to fund PayPal's growth."
Tue, Apr. 28, 1:51 PM
- Looking to speed checkout times for online shoppers (and in doing so get them to pay with PayPal instead of an alternate option), PayPal (EBAY +1.3%) has extended its One Touch payments service (allows users to pay without having to enter their username/password) to websites. One Touch launched on mobile apps last fall; some clients have reported seeing major increases in conversion rates after adopting it.
- The solution takes aim at Stripe, which has often been praised by merchants for offering better and easier integration with their sites than PayPal, as well as providing better management tools and customer support. Stripe, valued at $3.6B in a recent funding round, has a customer base that includes OpenTable, Salesforce, and Rackspace; it has also struck deals to handle payments on Facebook and Twitter's sites/apps.
- The move comes ahead of a PayPal spinoff expected to boost the company's ability to strike deals with eBay marketplace rivals. eBay's PayPal division revenue rose 14% Y/Y in Q1 to $2.1B, and its payment volume 18% to $61.4B.
Wed, Apr. 22, 5:35 PM
Wed, Apr. 22, 4:37 PM
- eBay (NASDAQ:EBAY) reports total payment volume rose 18% to $61B in Q1.
- U.S. revenue up +8% Y/Y and -10% Q/Q (holiday).
- International revenue +2% Y/Y.
- Merchant services volume +26%.
- PayPal active accounts +11% to 165M. Active transactions +24% to top a billion.
- Higher engagement for PayPal was struck with transaction count and monetization per account both higher.
- Guidance: The company sees Q2 revenue of $4.4B-$4.5B vs. $4.67B consensus and EPS of $0.71-$0.73 vs. $0.71 consensus. Full-year revenue of $18.35B-$18.85B seen vs. $18.95 consensus.
- Previously: eBay beats by $0.07, beats on revenue
- EBAY +4.1% after hours.
Wed, Apr. 22, 4:17 PM
Tue, Apr. 21, 5:35 PM| Tue, Apr. 21, 5:35 PM | 6 Comments
Mon, Apr. 13, 5:25 PM
- EBAY has named Home Depot merchandising SVP Harry Hal Lawton the head of its North American marketplaces ops. Lawton's predecessor, Christopher Payne, recently left to become the CEO of Tinder.
- Scott Cutler, most recently the head of global listings at the NYSE, has been named president of StubHub. Former StubHub chief Chris Tsakalakis left last fall. Also: Former Agilent general counsel Marie Oh Huber has been named eBay's general counsel.
- News of the appointments comes a week after eBay disclosed director Tom Tierney will replace Pierre Omidyar as chairman following the PayPal spinoff, and that John Donahoe (already set to be replaced as CEO by Devin Wenig) will leave the board to chair PayPal.
Thu, Apr. 9, 5:28 PM
- Ahead of PayPal's spinoff (set for 2H15), EBAY has agreed 80% of its Marketplaces GMV will be handled by PayPal for the next 5 years. PayPal will be compensated if its share goes below 80%, and pay a commission if it rises above 80%. PayPal will also pay a referral fee when new users are signed up via eBay.
- eBay is prohibited from creating its own payments system during this time, and PayPal from creating a marketplace. As expected, PayPal will be free to strike payments deals with eBay rivals such as Amazon and Alibaba - both already have their own payments platforms, but Alibaba has said it's open to working with PayPal internationally.
- Also: eBay CEO John Donahoe says he'll serve as PayPal chairman following the spinoff, and (as was reported) step down from eBay's board. Meanwhile, director/former Bain CEO Tom Tierney will replace founder Pierre Omidyar as eBay's chairman. eBay CFO Bob Swan will also step down, while joining eBay's board.
- The companies stated in last September's spinoff announcement AmEx exec Dan Schulman will be CEO of PayPal following the split, and Marketplaces chief Devin Wenig CEO of eBay.
Mon, Mar. 30, 4:20 PM
- StubHub (NASDAQ:EBAY) accuses Ticketmaster (NYSE:LYV) and the Golden State Warriors of violating U.S. antitrust law, as well as California's unfair competition law, by threatening to revoke the privileges of season ticket owners if they resold their tickets through a platform other than Ticketmaster's NBATickets.com, from which the Warriors receive a cut on sales.
- StubHub: "If the anti-competitive actions complained herein are not stopped, Ticketmaster is likely to seek to replicate them with other teams. As a result, millions of Americans will be held captive to a monopoly secondary ticketing exchange."
- The eBay unit claims its Warriors ticket listings are down 80% this year. As it is, StubHub's top line has been hurt in recent quarters by listing fee cuts meant to keep rivals at bay.
Thu, Mar. 26, 3:06 AM
- Not only have brick and mortar banks transgressed numerous U.S. sanctions programs (I, II) against countries like Iran, Cuba and Sudan, but PayPal (NASDAQ:EBAY) has also just agreed to pay $7.7M to settle similar charges from the U.S. Treasury Department.
- PayPal did not adequately screen its transactions for U.S. sanctions targets for several years through 2013, resulting in 486 apparent violations of U.S. law, the Treasury said in a statement.
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