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EBay Exceeds Sales Forecast Estimates

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EBay Inc. (NASDAQ:EBAY) has released higher sales forecast that what the analysts’ predicted, over improvements to the world’s largest online marketplace website.
EBay Inc. released on Wednesday a statement of its second quarter sales estimates which are set to increase as much as $2.65 billion. The profits for are projected to be between 45 to 46 cents per share, excluding some costs. The projected revenue by analysts was $2.52 billion with earnings of 46 cents per share.

John Donahoe, the Chief Executive Officer of EBay in his turnaround plan that was instilled after two thirds of the year, has acquired seven different businesses in the last year to increase the overall sales growth and revenue of EBay. The companies acquired in the past year include Milo, Where.com and Red Laser, which are part of EBay’s efforts to penetrate the mobile market. Increasing mobile monetary transactions in pushing companies to rapidly become the next EBay of the mobile market place.
EBay’s money transaction service, PayPal is also becoming fast the transaction service of choice for many people and is increasing in popularity. It is still the fastest source of income and growth for EBay with the company growing 23 percent to around $992 million in the previous quarter. PayPal accounts for 39 percent of the online marketplace company.
However, Amazon.com Inc. (NASDAQ:AMZN) still leads EBay in the internet retail space. The shares of Amazon.com have rose by 38 percent in the last quarter, whereas EBay’s sales have only managed 16 percent in the last quarter.
The improved forecast of EBay caused its shares to increase in value with a 22 cent increase after the announcement in late trading on the Nasdaq Stock Market. The stocks of the company have increase in the past 12 months by 22 percent.
The first quarter profits of EBay increased by 20 percent to $475 million. The sales increase to $2.55 billion.
In order to reignite growth, the Chief Executive Officer has increased finances to engineers to improve the EBay site. The listing fees for sellers have been reduced and also the search engine has been re-modified to increase specific searchers. This according to Donahoe has created a new Baseline that will help in future modifications to the site.
One of the largest acquisitions by EBay last year was of GSI Commerce Inc. for $2.4 billion, in its attempts to attract huge retailers and successfully challenge Amazon.com.

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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