Oct. 8, 2014, 12:59 PM
- ChannelAdvisor (ECOM -1.8%) clients selling on Amazon (AMZN +0.1%) saw a 37.9% Y/Y same-store sales increase in September. That figure is down from August's 45.1%, but above that for all but 2 of the last 12 months and still over 2x e-commerce industry growth. 35% of the sales were fulfilled by Amazon, up from 30.2% a year ago.
- eBay (EBAY +1.1%) same-store sales rose 8.9% Y/Y, an improvement from August's 5.9% but still below industry growth. Amazon's share gains and Google algorithm changes continue taking a toll. Auctions -4.1%, fixed-price +7.6%, Motors +14.7%.
- Same-store sales driven by search ads - largely from Google (GOOG -0.4%) - rose 28.5% Y/Y, a sharp increase from August's 13.6%. Clicks +8%, ad prices +1% (pressured by low smartphone ad prices), orders +8%, average order value +15%.
- Google Shopping-related same-store sales rose 45.2% Y/Y, a slowdown from August's 54.3% but still far above industry growth. Average order value rose 33.9%, something ChannelAdvisor attributes to both strong consumer spending and algorithm changes that have led higher-priced goods to be shown more often.
Oct. 1, 2014, 8:03 AM
- Following yesterday's 7.5% gain in eBay (NASDAQ:EBAY) amid the PayPal spinoff announcement, Jefferies, JPMorgan, JMP Securities, and Wedbush all pull their Buy (or Buy equivalent) ratings on the stock.
- "We do not see benefits to the PayPal business from the spin-off and expect some profit leakage to eBay, as well as dis-synergies," says Wedbush's Gil Luria. "Given the more favorable structure to BABA vis-à-vis Alipay, we would expect a commercial agreement between PayPal and eBay to be somewhat less favorable to PayPal compared to the current presentation of the profit split."
- Shares -2.8% premarket
Sep. 30, 2014, 11:02 AM
- Having just appeased one activist (Carl Icahn) by announcing plans to spin off PayPal, eBay (EBAY +6.8%) is now set to contend with another: Dan Loeb's Third Point LLC reportedly has a "significant position" in eBay, and has held talks with outgoing CEO John Donahoe.
- eBay remains sharply higher, albeit off its premarket highs. Street commentary about the spinoff has been positive - Cowen thinks both Marketplaces and PayPal will be better-equipped to deal with rivals as independent companies, and calls Amex's Dan Schulman a "compelling choice" to run PayPal. With Marketplaces making up 27% of PayPal's Q2 transactions, overlap between the businesses is deemed "manageable."
- SunTrust thinks eBay is worth somewhere between $55.72-$88.74/share on a sum-of-the-parts basis. Re/code notes an independent PayPal could have an easier time recruiting talent and battling with upstarts such as Apple and Stripe; the latter has recently scored deals with Facebook and Twitter.
Sep. 30, 2014, 9:11 AM
Sep. 30, 2014, 7:35 AM| Comment!
Sep. 30, 2014, 7:11 AM
- The deal to create two standalone publicly traded businesses is expected to be completed as a tax-free spinoff in H2 of 2015.
- Devin Wenig, currently president of eBay (NASDAQ:EBAY) Marketplaces, will become CEO of the new eBay company following the separation. AmEx's president of the Enterprise Growth Group Dan Schulman comes over immediately as president of PayPal and will be the CEO of PayPal after the spinoff.
- Neither current CEO John Donahoe nor current CFO Bob Swan will have executive management roles in the two new companies.
- A conference call is set for 11 ET.
- Source: Press Release
- The stock is currently halted from trade.
Sep. 23, 2014, 2:19 PM
- PayPal (EBAY +0.6%) has struck deals with major Bitcoin (COIN, OTCQB:BTCS) payment processors Coinbase, BitPay, and GoCoin to enable Bitcoin payments for digital content through the PayPal Payments Hub. The Payments Hub allows digital content providers to quickly handle payments via PayPal, credit cards, and other payment types.
- Notably, the deal doesn't cover PayPal's own widely-used digital wallet, and also doesn't involve PayPal processing Bitcoin transactions itself. In addition, pre-sales (i.e. payment for a product/service to be delivered later) won't be supported.
- PayPal has taken a relatively cautious approach to Bitcoin, even as a number of major firms (inc. Dell, Expedia, Dish Network, and Newegg) have embraced the virtual currency. However, the company's independently-run Braintree unit threw its weight behind Bitcoin earlier this month.
- Bitcoin prices, under pressure in recent weeks, have rallied thanks to PayPal's move. Coinbase currently shows a bid-ask spread of $427.29-$427.61.
Sep. 15, 2014, 9:39 AM
- Piper Jaffray's Gene Munster views last Friday's reports that Google (GOOG -0.7%) is in talks to buy a stake in eBay (EBAY -0.4%) as largely unsubstantiated and thinks a deal between the two is unlikely despite Google's penchant for making big bets.
- But the analyst goes on to say that if Google were to buy a stake in eBay, he believes it would specifically target PayPal, particularly given Apple’s unique Apple Pay feature on the iPhone 6.
- Munster maintains a Neutral rating and $55 price target on eBay shares.
Sep. 12, 2014, 11:55 AM
Sep. 12, 2014, 11:26 AM
Sep. 12, 2014, 2:14 AM
- eBay (NASDAQ:EBAY) plans to launch an advertising network for its mobile app in the fourth quarter, shifting from the "retail-only" space into the fast-growing mobile ad market.
- Despite the new danger of drawing people away from the website, eBay's head of advertising Stephen Howard-Sarin downplayed the risk, citing how many users repeatedly return to the site.
- eBay will also have an easy time tailoring the ads, as users have a universal login across all their devices.
Sep. 11, 2014, 12:10 PM
- Needing to focus on a family matter, eBay (EBAY -0.2%) SVP and Chief Technology Officer Mark Carges has resigned.
- "From overhauling search, and steering upgrades to the eBay Enterprise technology portfolio, to accelerating innovation through a number of strategic acquisitions, Mark has been instrumental to eBay’s success," says the company in a blog post. "Among his greatest contributions is his effort to develop eBay technologists, expand their career and increase eBay’s technology presence in India and China."
- CEO John Donahoe tweets: "Heartfelt thanks for an incredible 5 years of innovation. You have been instrumental to our success. We will miss you."
Sep. 10, 2014, 9:23 AM
- Same Store Sales for Amazon (NASDAQ:AMZN) rose 45.1% in August, up from 40.4% in July, and continuing a trend of increasing the Y/Y growth rate every month in 2014.
- Continuing to lose share, eBay (NASDAQ:EBAY) SSS rose just 5.9% in August, down from 9.7% in July, and the weakest result for the company since February 2011. Looking further into the detail, eBay auctions fell 11% Y/Y, eBay fixed price rose 6.8% (down from 12.8% in July), and eBay Motors rose 8.4%.
- Full report
- AMZN +1.7%, EBAY -2.7% premarket
- Previously: eBay downgraded over Apple Pay
Sep. 10, 2014, 7:27 AM
- "While unlikely to impact eBay's (NASDAQ:EBAY) business over the next 6-12 months, we believe the unknown competitive threat of Apple Pay will further weigh on eBay's multiple over the next 3-6 months as Apple Pay has the potential to disrupt the competitive mobile payments market," says Piper's Gene Munster, pulling his Overweight rating and cutting the price target to $55 from $63.
- "We believe a lower multiple on eBAY is deserved given the change to the competitive market, even though over the next 6-12 months fundamentals on the core PayPal business remain intact."
- Shares -0.9% premarket after yesterday's 2.8% decline.
Sep. 9, 2014, 1:59 PM
- Apple (AAPL +4.8%) plans to launch a mobile payment solution called Pay in a bid to replace physical wallets, credit cards, and other mobile wallet services which have "failed" - according to CEO Tim Cook.
- The company will use its Passbook app and a customer's iTunes account details to store payment information, while NFC and touch ID technology will be utilized. The major credit card companies are already on board and Apple is lining up powerhouse banks. Shares of eBay (EBAY -1.9%) have dipped off the development.
- Apple will launch iOS 8 on September 17 in front of the September 19 release date for its new iPhone 6 in the U.S.
- More on the iPhone 6: Wi-Fi calling will be available for both new products. 14 hours of 3G talk time for the 6 and 24 hours for the Plus are promised. The phones feature a new sensor which serves as a barometer to measure elevation changes (Nike (NKE +0.1%) is on board). The 8MP iSight camera appears to be a serious jump in quality (video at 1080p and a slo-mo option at 240 fps). FaceTime gets a serious upgrade through the new front-facing camera. Pricing tops out at $399 for the 128GB iPhone 6 with a two-year contract.
- Apple event webcast
Sep. 9, 2014, 2:25 AM
- eBay (NASDAQ:EBAY) will start processing payments in bitcoin (COIN, OTCQB:BTCS) at its Braintree payments subsidiary, part of its PayPal unit.
- Braintree will roll out the capability in the coming months, and will work with bitcoin exchange Coinbase to enable payments in the virtual currency.
- The move could potentially allow PayPal’s 152M accounts to use the currency as payment, prompting wider use and acceptance of bitcoin.
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