eBay Numbers good again
Mid August I invested in eBay and today they brought out new numbers. The stock went up in afterhours as visibly on Yahoo! Finance EBAY and it’s now up more than 4% in Germany, even though they only really met analyst expectations. What does that mean though? Their profit surged more than 76%, on a quarter to quarter measurement, going from $103.25 million to $182.35 million. Over the last 9 months they are up 52% with international transaction revenue up 82%. eBay now boosted it’s outlook for the year but said that next year can see a little fluctuation in their transaction revenue, mainly because they really are in a seasonable business at least a little bit and just a few percentages less trading will end up in a few millions less in the bank. Sales this year should be at $3.25 billion, coming in at $4.2 billion next year.
While I invested for a big part due to PayPal, they seem to have had some outages this month. I am positive that they are learning though and they are rebuilding PayPal at the moment. But PayPal has grown by over 60% in relation to last year in term of users and I even presume that this growth will rise further with adoption of bigger merchants. I am starting to see more and more articles in the press and especially the “insurance” of giving people back up to 400 EURs (or $?) when they get tricked by the seller, will help both PayPal grow and eBay attract more people. Over the entire amount of transactions via PayPal (over 4.6 Billion USD) there should be enough place to cushion off any defaults and problems there.
They are still increasing their international expansion with additional revenue coming from the US, international expansion and also PayPal who as Meg Whitman says is still in its early stages.
Still happy with my investment. :)