In the past two years, eBay (NASDAQ: EBAY) in every quarter to meet or exceed analysts' earnings forecast, in most cases, ahead of the arrival of the upper end of estimates. This, coupled with on its stock 55% of the upward trend in the past 12 months, has caused a lot of growth, online retail wig for sale write-ups. In my opinion, eBay's growth story has been overdone. If so, we see today is a lot of people would call the tip of the iceberg. I believe that the company's growth story has only just begun, there are still many more surprises.
PayPal major driver of growth
PayPal eBay's future growth can not be ignored. In the past quarter, PayPal sector sales grew 18%, to $ 15 billion. In fiscal year 2012, PayPal 1 trillion e-commerce transactions accounted for 15%, totaling $ 14.5 billion transaction processing.
Why do I think, PayPal will become a key force behind the growth? Paypal is locked to powerful mobile rally in the world. It is riding on the waves of smartphones and tablet computers are growing, and in this process greatly. Ended in the quarter increased 500 million users, 2.8 million by moving. This angle, more than half, or at least 50% of the new PayPal users through moving rope. This is of course not to mention the existing users choose to switch from PC to mobile.
eBay CEO John Donahoe reiterated the company's solid position in the company's earnings, mobile. Donahoe made it clear that the company will focus on the opportunities of mobile technology on the grounds that increase the importance of the involvement of consumers, regardless of location.
This is renewed focus on mobile on eBay is a good thing to do? I believe it is. This is why I say this.
U.S. online retail and online retail in other developed economies, is expected to grow forward. Forrester expects U.S. online retail sales reached $ 37 billion, $ 23.1 billion from 2013 to 2017, the U.S. dollar. This is essentially transformed into a compound annual growth rate of 10%. However, the fashion, people access the Internet, or go online if you are willing, is to change. Computer less and less popular, consumers tend to tablet PCs and smart phones. Tablet PC sales have been rising, while PC sales has thinned. In fact, industry experts argue that the tablet PC sales this year will exceed PC sales and Tablet PC shipments expected to reach 240 million units, compared with the PC, 207 million units. On the other hand, sales of smart phones for the first time over the feature phone sales, 51.6% of the global mobile phone sales, according to IDC.
This upward trend in the mobile device will be a game changer online business. EBay's renewed focus on moving forward in its PayPal business growth.
Resist competition
Amazon (NASDAQ: AMZN) is still a major competitor of eBay. The company has seen a great deal of capital expenditure, the steps its bid to expand its footprint in the country brick and mortar. Mushroomed distribution warehouses across the country, will help the company improve delivered to the customer.
Despite greater presence in the Amazon, eBay will still be able to operate, there is not much left out in the cold. While Amazon is still one of the top retailers, eBay cater to small businesses want to get the go-ahead. Therefore, these two conflicting tone is very difficult. In fact, PayPal is catching up, have been and will continue to address the common frustration of delayed payments in auctioneering.
Google (NASDAQ: GOOG) digital wallet on the other hand, there are still a lot of catch up to do. The comScore à A recent study shows that the U.S. market is greatly biased PayPal. All of the surveyed consumers, comScore established, only 41% of people know, Google's digital wallet. Stacking, who knows 72% of PayPal, which is a small percentage. To make matters worse, those who know 48% of active PayPal users. Active users of the Google wallet in a paltry 8 percent.
Conclusion
eBay's most recent earnings report, the key to one of the highlights is a reduction in the current quarter guidance. This quarter, the company forecast below Wall Street expectations, sending a few percentage points decline in the share price at the time of the earnings report. Since then, the share price has stagnated around $ 50 to $ 54. By the company's growth prospects, it would be wise to pick up the negative emotions of shares. In the stock market has a huge growth potential.
 
 



Other News:
BofA sells $110 billion CMBS servicing rights portfolio to KeyBank
Australia gov't forecasts $19.4 billion deficit
eBay’s Growth Story is Only Just Beginning
Kenya asks U.N. Security Council to end Hague case against president
Higher prices for MS drug help drug firm Merck
Brother arrested in fatal Calif. stabbing of girl
Long troubled by school bullying, Japan now eyes zero tolerance
Deadly bomb strikes civilian area in east Libya