2 Numbers eBay Stock Investors Should Know Ahead of Earnings

If PayPal keeps winning, so, too, will eBay (NASDAQ: EBAY  ) stock investors.

What can we expect from the payments platform when the auctioneer reports earnings on April 17? Outsized growth seems likely. Despite growing competition from Square, Google (NASDAQ: GOOGL  ) , and even Groupon (NASDAQ: GRPN  ) , PayPal handled 700 million payments transactions and served 123 million active accounts in the fourth quarter. Investors should be looking for meaningful growth in both figures in the Q1 report.

For its part, Wall Street is expecting first-quarter revenue to grow 14.9% to $3.76 billion, resulting in $0.62 of profit per share. The company has marginally beaten earnings estimates in each of the past four quarters, according to data supplied by Yahoo! Finance. eBay stock is up more than 61% over that period.

Would a bigger beat help eBay stock rally further? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova weighs in on this question in the video below. Please watch and then leave a comment to let us know what you whether you would buy, sell, or short eBay stock at current prices.

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  • Report this Comment On April 14, 2013, at 8:38 PM, PhilipCohen wrote:

    How about the numbers of unsold items that eBay is hiding ...

    http://www.ecommercebytes.com/C/letters/blog.pl?/comments/20...

    So as to deceive researchers into thinking that the eBay sell through rate is far greater than it actually is, in the “completed listings”, eBay lists completed “sold” items for the previous ninety days, but for completed “unsold” items, eBay now lists only the previous thirty days. The result of this undoubtedly calculated “false representation” (ie, fraud) is that, without very close examination, the sell though rate appears to be three times greater than it actually is …

    Only at eBafia is there an habitual production of “smoke and mirrors” to obfuscate matters; but, no amount of smoke and mirrors can disguise the fact that the eBay marketplace is slowly dying; then I guess, you can’t blame the Ho for trying to disguise the fact—he has to try to prop up the eBay share price to facilitate his obscene “performance” (LOL) bonuses.

    Hmmm, I wonder then how much smoke and mirrors is contained in the version of eBay’s quarterly financials that we outsiders get to see?—LOL …

    Oh no, not another "reduction" in eBay fees ... http://bit.ly/YvxFEg

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