PayPal pays off for eBay investorsJanuary 17, 2013: 12:22 PM ET
Auction site eBay continues to impress investors, thanks in large part to the ongoing success of PayPal.
Late Wednesday, eBay reported better-than-expected earnings and revenue for its latest quarter. And while the company issued slightly weaker guidance for the current quarter, its full-year outlook was rosier.
Shares of eBay (EBAY) rallied nearly 4% to a new 52-week high Thursday. The stock has been on a tear, soaring 41% over the past six months.
eBay credits the growing success of PayPal, which recorded a 250% surge in mobile payment volume in 2012 to nearly $14 billion as more consumers used mobile devices to satisfy their shopping appetites. In fact, PayPal ended the year with roughly 123 million registered accounts, up 15% year over year.
"Mobile continues to rewrite the commerce playbook, and we continue to be a mobile commerce and payments leader," said eBay CEO John Donahoe.
And StockTwits traders seem to agree.
Just looking at $EBAY results: GMV growth of 16%yoy, accelerated from ~11%yoy during the rest of the year. Strong stuff.
$EBAY call: PayPal margins did come down in 4th quarter "we invested more" "drive consumer awareness" "product" "merchant ubiquity"
That's not necessarily a bad thing is it? eBay can't count on PayPal to be its only cash cow. In fact, the company's Marketplaces biz is gaining some nice traction, delivering a record revenue of $2 billion in the fourth quarter.
$EBAY The one big positive data point to me in this earnings? $13B in Mobile transactions and $14B in PayPal mobile payments in 2012
With almost 700 million payments transactions handled, Q4 was the busiest in @PayPal's history. $EBAY #eBayQ412 http://stks.co/gJP6
All of that is true but also keep in mind that the fourth quarter is holiday shopping season so it's not a huge surprise that there would be a spike in sales. I know I did 90% of my shopping online this year. But it does seem like eBay is doing a good job of staying in tune with consumers' fickle behavior.