released its wildly successful first quarter results, and is predicting a
favorable second quarter as well.
years, eBay has been revamping its auction and shopping website in an effort to
compete with online retailers like Amazon. EBay was popular during the dotcom
boom, and as time went on, it gradually lost that popularity.
things are really turning around for eBay. At an investor meeting earlier
this year at eBay's headquarters in San Jose, California, executives reported
that shares of eBay increased nearly 8 percent after announcing that PayPal
revenue could double in as little as two years. In addition, eBay has stayed
relevant by releasing a new mobile app that allows scan technology to compare
prices on a mobile device, and users can then checkout securely with PayPal.
According to eBay, attempts like this would increase adjusted earnings per eBay
share by 10 to 14 percent by 2013 on total revenue of $13 billion to $15
also struck a few deals in order to stay in the online shopping ring. For
instance, eBay just made a $2 billion purchase of e-commerce services firm GSI
Commerce in March in an effort to persuade more businesses to use eBay to sell
of these attempts have
proved to be beneficial to eBay. Its first quarter results ending March 31 of
this year showed that revenue rose 15.9 percent to $2.55 billion, and the net
income was $476 million, or 36 cents per share. One year earlier, the net
income was $398 million, or 30 cents per share.
number of active users grew 5 percent during the first quarter,
and eBay expects to pass 100 million users during this quarter.
marketplaces revenue increased 12 percent in the first quarter, and was higher
than any other quarter last year. In addition, PayPal revenue increased by 23
As far as
the current quarter goes, eBay expects adjusted earnings of 45 cents to 46
cents per share on revenue between $2.55 billion and $2.65 billion. EBay
predicts $1.93 to $1.97 per share on revenues of $10.6 billion to $10.9 billion
for all of 2011.
focused on redefining retail and leading the next generation of commerce and
payments," said John Donahoe, eBay chief executive.
Street predicted first quarter revenue of $2.48 billion, and predicts 46 cents
per share on revenues of $2.52 billion.