Even with eBay (NASDAQ:EBAY) is expected to increase margins and has strengths in several segments, all that could be negated by FOREX challenges, especially in relationship to the Euro and the British Pound.
Barclays (NYSE:BCS) said, "We are modestly raising core estimates for 4Q10 and 2011 GMV and TPV based on Marketplaces improvements both in the U.S. and International, as well as PayPal Merchant Services strength. Additionally, we are tweaking Marketplaces take rates higher and raising overall margins slightly. However, the impact is muted somewhat by the weaker Euro (-6%) and British Pound (-3%) relative to spot rates coming out of 3Q earnings more than a month ago, which also weighs on cross-border activity which accounts for roughly 20% of Marketplaces and likely more than that for PayPal. For 4Q10 we remain at PF EPS of $0.47, for 2011 we go from $1.81 to $1.85."
Barclays maintains an "Equalweight" on eBay, which closed Tuesday at $29.14, falling $1.09, or 3.61 percent. Barclays has a price target of $29 on eBay, raising it from $27.
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