Strong gains, Dipping shares and aggressive 2015 goals. This is what eBay can be described today considering the last 5 months moves of the company.
eBay Q1 Results
Recently, eBay disclosed its Q1, FY13 financial reports, showing revenue gains of $3.75 billion, net income of $677 million and a profit of $829 million. Despite of generating 19% profit this year, the eBay shares went down about 3 percent in after-hours trading.
The experts believe that the reason for such downfall is slow sales growth in eBay’s PayPal division along with gains below expected forecast for the company’s Quarter one.
eBay’s Global Expansion
In the past few years, eBay have gained an extraordinary growth in the global markets owing to its aggressive strategies of going into joint ventures, mergers and acquisitions, creating a brand all over the world. Starting with US, eBay today is raising its flags in many Asian and European countries.
During the FY 2012, eBay Inc. enabled more than $175 billion of ECV. ECV is the total commerce and payment volume across eBay’s all three business units. eBay added more than 3 million users to its online marketplace in Q1, FY13.
Recent partnerships with Yahoo and Google for onsite advertising have increased the popularity of eBay all around. Also with recent investments in Snapdeal, eBay shows its aggressive plans for India. With the positive Q1 results, eBay is determined to grow annual revenue to more than $21 billion by 2015, as announced by eBay during last month.
eBay vs Amazon
Though eBay is dealing with competition in many areas, but Amazon is being considered to be its major one. While Amazon is working on a centralized model of marketplace, eBay is doing it in a decentralized way. eBay is currently working with 17% operating margin which is much higher than Amazon who is working with 5% margin. However, in stocks, Amazon is considered to be an overvalued company. With regard to the consumer base, both are having wide popularity. In future, eBay may get advantage of its no inventory model as compared to Amazon.
eBay Inc., The San Francisco based global technology company is enabling commerce through segments such as Marketplaces, Payments and GSI. It having more than 4 million registered users in India.