Investors Just Don't Get eBayhttp://www.fool.com/investing/general/2010/04/22/investors-just-dont-get-ebay.aspx Rick Aristotle Munarriz
April 22, 2010
Shares of eBay (Nasdaq: EBAY ) dipped last night, even though the company's quarterly report wasn't necessarily a stinker.
Sure, it's disappointing to see the online marketplace giant deliver guidance for the current quarter below Wall Street's consensus. It may appear to be a letdown to see revenue not keep pace with transactional volume. Net margins also could have done a better job.
However, put it all together, and it's great to see eBay growing again.
Let's dive into the numbers. Revenue grew by 18% to nearly $2.2 billion if we exclude Skype. Non-GAAP earnings of $0.42 a share are just 8% higher than the $0.39 a share posted a year ago, but analysts were settling for an adjusted profit of $0.41 a share.
PayPal was a stallion, again. Revenue rose by 26%, fueled by a 35% spike in total payment volume to $21.3 billion. This is a niche that eBay owns practically uncontested. Visa (NYSE: V ) announced a $2 billion deal for CyberSource (Nasdaq: CYBS ) yesterday to gain a bigger foothold in online transactions, but that isn't going to get in the way of PayPal's consumer and merchant dominance.
Besides, we're not seeing PayPal slow down since