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Mar. 2, 2015, 12:01 PM
- PayPal (EBAY +0.4%) is acquiring Paydiant, provider of a white-label platform that allows retailers to create their own mobile wallet apps, replete with payment, loyalty card, and digital coupon support. Multiple sources tell Re/code the purchase price is around $280M.
- Paydiant's customer base includes Subway, CapitalOne, and (notably) MCX, a consortium of major retailers that plans to launch a QR-code based mobile payments platform (called CurrentC) later this year. MCX's backers include Wal-Mart, Target, Kmart, Best Buy, Dunkin' Donuts, CVS, and several large gas station chains.
- The deal comes on the heels of the Apple Pay launch, Samsung's acquisition of mobile payments platform LoopPay, and Google's deals with U.S. carriers to pre-install Google Wallet on their Android phones. Google is also rumored to be working on Android Pay, an API for 3rd-party apps that can handle both online and in-store payments.
- Though PayPal handled $45.6B worth of mobile transactions in 2014 (mostly online), the rise of mobile payments and authentication platforms backed by tech/Internet giants has been viewed as a long-term threat. Evercore last November: "[T]he convenience that mobile necessitates means that demand channels, including marketplaces, Search, Social and even the OS, are moving closer to sellers ... The result allows demand channels the opportunity to offer payment elements, including user authentication and stored payment credentials for the user on behalf of the merchant, a role traditionally reserved for payment players, most notably PayPal."
Feb. 6, 2015, 7:16 AM
- Reflecting a lower income tax expense, eBay (NASDAQ:EBAY) has revised its 2014 earnings upward by $87M, after it underestimated the tax benefit of an inter-company transaction that happened in December.
- After adjustment, eBay's net income rose to $1.02B from $936M in the quarter ended Dec. 31.
- Previously: eBay beats by $0.01, but guides light (Jan. 21 2015)
Feb. 3, 2015, 5:58 PM
- Re/code reports EBAY began notifying employees affected by its planned job cuts (set to affect 7% of the workforce) on Monday, and that the group includes PayPal workers who "held sales and product roles in the division that focuses on getting restaurants and small business retail stores to accept PayPal as a payment method."
- The site adds PayPal's in-store initiatives have "largely been viewed as big disappointments inside the company," and speculates the severity of the cuts suggests "PayPal may be looking to refocus on its core Web and in-app payments under CEO-designee Dan Schulman."
- PayPal has rolled out or trialed a smorgasbord of products/services over the last few years that are meant to enable offline/mobile payments. They include Bluetooth beacons, a Square-like credit card reader, offline payment options for the company's core Android/iOS apps, an NFC payment service, and a solution for making payments using a phone # and PIN (Discover is a partner).
- Collectively, the solutions have seen only modest uptake. On the other hand, PayPal's mobile payment volume (largely tied to e-commerce) grew to $45.6B in 2014 (20% of total volume), and was up 58% Y/Y in Q4.
Jan. 21, 2015, 4:42 PM
- Along with its Q4 results, EBAY announces it has reached a standstill agreement with Carl Icahn, whose demand for a PayPal spinoff was satisfied last September. Icahn Capital exec Jonathan Christodoro will be joining eBay's board; Icahn will have the right to decide whether Christodoro serves on eBay or PayPal's board after the spinoff.
- Also joining eBay's board: Former Wellington Management chairman/CEO Perry Traquina, and Frank Years, the chairman of financial advisory firm CamberView Partners. The board now has 15 directors, 13 of whom are declared to be independent.
- Confirming a December WSJ report, eBay says it's cutting 2,400 jobs (~7% of its workforce). The layoffs will cut across Marketplaces, PayPal, and eBay Enterprise, and be carried out in Q1.
- The company is now "exploring strategic options for eBay Enterprise, including a sale or IPO." While declaring Enterprise, which provides various e-commerce services for major online retailers, a "strong business," eBay says it has become clear the unit "has limited synergies" with either Marketplaces or PayPal.
- Enterprise's sales rose 9% Y/Y in Q4 to $443M, accounting for 9% of eBay's revenue.
- EBAY now +3.7% AH. Q4 results/guidance, PR
Jan. 21, 2015, 4:19 PM
- eBay (NASDAQ:EBAY): Q4 EPS of $0.90 beats by $0.01.
- Revenue of $4.92B (+8.6% Y/Y) misses by $10M.
- Expects Q1 revenue of $4.35B-$4.45B and EPS of $0.68-$0.71, below a consensus of $4.7B and $0.76.
- Expects 2015 revenue of $18.6B-$19.1B and EPS of $3.05-$3.15, below a consensus of $19.97B and $3.26.
- Shares -1.2% AH.
Jan. 20, 2015, 5:35 PM
Dec. 12, 2014, 1:44 PM
- Apple's U.S. and U.K. sites now support PayPal (EBAY -1.1%) as a payment option. Internet Retailer ranks Apple as the second-largest online retailer in the U.S., behind Amazon.
- The deal acts as a valuable win for PayPal as the online payments giant, along with its Braintree unit, continues battling against Stripe, Amazon, and other challengers for the support of online merchants selling on sites not named eBay.
- It comes even though Apple has been pitching Apple Pay as a solution for both online and offline payments. Priceline just announced its iOS apps will support Apple Pay-based purchases that are authenticated "with a single touch via Touch ID."
Dec. 10, 2014, 5:52 PM
- EBAY is weighing a plan to "eliminate thousands of jobs early next year," the WSJ reports. One source says the company has talked about slashing at least 3K jobs (~10% of the workforce).
- The cuts would come ahead of a PayPal split set to occur in 2H15. eBay's spending has been exceeding revenue growth in recent quarters: While revenue rose 12% Y/Y in Q3, GAAP opex rose 17%.
- eBay's 33.5K employees are almost evenly split between PayPal and Marketplaces. Marketplaces still generates more revenue ($2.16B vs. $1.95B in Q3), but PayPal has been growing much faster (20% vs. 6%).
Dec. 10, 2014, 11:10 AM
- CEO John Donahoe will likely leave eBay's (EBAY -0.3%) board and join PayPal's board after eBay finishes spinning off PayPal, Re/code reports.
- The site adds Donahoe wants to give Marketplaces chief Devin Wenig "the freedom to run the company as he sees fit without having to answer to his former boss." Wenig is set to become eBay's CEO following the split, and AmEx exec Dan Schulman PayPal's CEO.
- CFO Bob Swan will reportedly join eBay's board if Donahoe leaves.
Dec. 9, 2014, 8:06 AM
- ChannelAdvisor reports holiday-to-date same-store sales are up 20.7% at Amazon (NASDAQ:AMZN).
- The holiday comp at eBay (NASDAQ:EBAY) is +14.7% through December 8.
- The peak for year-over-year sales gains this holiday season came in the third week of November on a new trend of retailers pulling forward some of their best deal which were reserved for Black Friday and Cyber Monday in the past.
- Amazon is down 1.1% premarket, while eBay is unchanged in light early trading.
Dec. 8, 2014, 9:35 AM
- "We envision a $2:$1 risk/reward on a base case and $3:$1 on a bull case based on what we believe are a reasonable set of assumptions and comparable," says Stifel's Scott Devitt, upgrading eBay (EBAY +1.5) to Buy and setting a $65 target.
- Devitt predicts PayPal will gain online payments share following its spinoff (Dan Loeb agrees), and thinks eBay's Marketplaces ops will see margin improvement in 2H15. He sees both PayPal and Marketplaces potentially growing their op. margins post-spinoff.
- The upgrade comes two weeks after Evercore's Ken Sena downgraded to Sell. He cited the ability of "demand channels" to authenticate users on mobile and store payment data without PayPal's help, and the efforts of Apple, Facebook, and other tech giants to do the same.
Dec. 2, 2014, 8:29 AM
- Going live this holiday season at Palo Alto's Stanford Shopping Center, the "Connected Mall" sounds wonderful to those of us used to getting completely lost in massive malls. Features include a 72" touchscreen, and mall maps in 3D view with accurate orientation of a shopper's exact location, including which way he/she is standing.
- Upon selection of a specific store, an interactive map will highlight the location and best route to get there; these directions can then be loaded on the shopper's mobile phone. Personalized deals and offers are also part of the experience.
- "Simon (NYSE:SPG) and the Retail Innovation Division of eBay (NASDAQ:EBAY) have been working on an exclusive basis in the mall space to enhance the shopping experience and provide retailers with a new and compelling way to engage shoppers," says Mikael Thygesen, Simon's CMO.
Dec. 2, 2014, 2:42 AM
- This year's Cyber Monday sales grew by much less than expected, according to data from IBM, as online retailers began their web promotions and sales during and even before the Thanksgiving weekend.
- Cyber Monday sales, which were projected to grow between 13%-15%, only reported an 8% rise.
- The results underline the waning importance of Cyber Monday and Black Friday, which until a few years ago kicked off the holiday shopping season.
- Related stocks: EBAY, AMZN, DKS, BBY, TGT, WMT, SPLS, M, GPS
- ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ
Dec. 1, 2014, 1:40 PM| Dec. 1, 2014, 1:40 PM | 10 Comments
Dec. 1, 2014, 7:50 AM
- Comscore estimates e-commerce spending rose 32% on Thanksgiving Day to $1.01B and 26% on Black Friday to $1.51B.
- Most retail analysts are sticking with their forecast for 4.0%-4.5% growth for holiday sales this year, with early shopping and e-commerce making up for a dip in store traffic on Black Friday.
- Apparel sellers in particular came out with a stronger online push this year.
- Related stocks: OTCPK:AMZZ, EBAY, AEO, ANF, JCP, JNY, JWN, KSS, LB, M, URBN, PSUN, BKE, WTSL, GPS, FDX, UPS, DKS, BBY, LULU, KATE, VRA, SPLS.
Nov. 28, 2014, 12:27 PM
- IBM estimates U.S. Thanksgiving online sales rose 14% Y/Y, aided by a 29.8% increase in sales from department store sites. Mobile respectively accounted for 32.3% and 52.1% of sales and site traffic, up from 25.8% and 42.6% a year ago. Average order value fell by $7 to $125.
- ChannelAdvisor (ECOM -0.9%) reports its clients' Thanksgiving same-store sales rose 20.1%. Their Amazon (AMZN +1.7%) same-store sales rose 25.9%, but their eBay (EBAY +0.8%) sales fell 3%. Notably, all other marketplaces collectively saw 110% growth - retailers such as Best Buy and Sears have been adding marketplaces to complement their direct sales.
- For reference, ChannelAdvisor reported 32.4% and 4.4% Amazon and eBay October same-store growth, respectively. eBay has been losing marketplace share to Amazon for some time, and was hit this summer by Google algorithm changes and a security breach.
- Early reports for Black Friday sales have generally been positive.
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