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.
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.
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.
Cyber Monday has been good to eBay.
Shares of the auction site hit a 52-week high Thursday, just days after logging strong gains on one of the most important online shopping days of the year for retailers.
It's not just online shopping that's attracting consumer interest. All in all, it looks like consumers are increasingly getting more comfortable with paying for their purchases on mobile devices.
eBay (EBAY) also got a boost MORECatherine Tymkiw - Nov 29, 2012 11:49 AM ET
More people are hitting the eBay auction block to buy and sell their wares, and they're using PayPal to complete those online transactions.
EBay (EBAY) reported third-quarter earnings per share that beat Wall Street estimates by a penny and said they have 14% more active users over last year.
Investors said buy, buy, buy to the stock Thursday, sending its shares up more than 4%. Several Wall Street analysts did too.
StockTwits MOREMaureen Farrell - Oct 18, 2012 3:00 PM ET
Mobile payments seems to have replaced social as the tech phenomenon that everybody is talking about. Privately held Square made waves with its groundbreaking deal a few weeks ago with coffee king Starbucks (SBUX). Wal-Mart (WMT), Target (TGT) and several other prominent retailers have teamed up to create the Merchant Customer Exchange. And Google (GOOG) has big financial and wireless firms such as Citigroup (C), MasterCard (MA) and Sprint (S) MOREPaul R. La Monica - Aug 23, 2012 10:27 AM ET
Shares of eBay rallied nearly 10% Wednesday, hitting their highest level since January 2006, after the company topped earnings and sales expectations for the second quarter.
eBay (EBAY) CEO John Donahoe credited the solid performance to the successful turnaround of the company's e-commerce business, called eBay Marketplaces.
Revenue for e-commerce business jumped 9% from a year earlier to a record high of $1.8 billion.
eBay's PayPal unit also continued to post strong results, MOREHibah Yousuf - Jul 19, 2012 11:50 AM ET
|Donald Trump's denial challenged by reporter with disability|
|Gold price plummets to almost 6-year low|
|Shoppers descend on Black Friday deals|
|Paul Walker's father sues Porsche over actor's death|
|Raspberry Pi's $5 computer sold out online in a day|