eBay (Nasdaq:EBAY) should be able to reverse share losses, according to Janney, citing continuing growth of PayPal, focusing on their top affiliates, and creating a better buying experience.
Janney said, "Management made positive initial comments on impact of Durbin Amendment on PayPal. Our thesis remains unchanged: 1) we believe eBay’s play book of driving traffic to its top-rated sellers should ultimately improve the buying experience; 2) increased selection and an improved buying experience should begin to stem market share losses; and 3) expect strong growth at PayPal."
Janney maintains their "Buy" rating on eBay (ebay), which closed Thursday at 30.78, gaining $1.68, or 5.76 percent. Janney raised its price target on eBay from $32 to $33.
Showing posts with label PayPal. Show all posts
Showing posts with label PayPal. Show all posts
Friday, January 21, 2011
Thursday, January 20, 2011
eBay (NASDAQ:EBAY) Risk/Reward Balanced Says Canaccord
Even though eBay (NASDAQ:EBAY) outperformed in their latest quarter and gave guidance above consensus, Canaccord sees the risk/reward at this time as balanced.
Canaccord says, "eBay reported Q4 results above consensus expectations on a stronger holiday season, international strength and better performance from Marketplaces and PayPal. Management guided full-year revenue and EPS above consensus, predicated on a stabilizing macro environment, and expected recovery in Marketplaces, bolstered by sustained strength in Payments. Though eBay should benefit from secular trends, we believe the risk/reward is balanced at these levels given slower-than-expected restructuring of the core US eBay business and competition."
Canaccord Genuity reiterates a "Hold" rating on eBay (EBAY), which was trading at $30.56, gaining $1.45, or 5.02 percent, as of 2:14 PM EST. Canaccord has a price target of $32 on eBay.
Canaccord says, "eBay reported Q4 results above consensus expectations on a stronger holiday season, international strength and better performance from Marketplaces and PayPal. Management guided full-year revenue and EPS above consensus, predicated on a stabilizing macro environment, and expected recovery in Marketplaces, bolstered by sustained strength in Payments. Though eBay should benefit from secular trends, we believe the risk/reward is balanced at these levels given slower-than-expected restructuring of the core US eBay business and competition."
Canaccord Genuity reiterates a "Hold" rating on eBay (EBAY), which was trading at $30.56, gaining $1.45, or 5.02 percent, as of 2:14 PM EST. Canaccord has a price target of $32 on eBay.
Wednesday, January 19, 2011
eBay (NASDAQ:EBAY) Results Should be on High End of Guidance Says Barclays
With eBay (NASDAQ:EBAY) about to report their latest earnings, Barclays said they see results coming in at the high end of guidance.
Barclays says, "We expect overall results to be at the high end of guidance or slightly above-note that over the last 8 quarters eBay has beaten consensus earnings by -$0.024 on average. We project revenue of $2.48B (+4.7% Y/Y) and PF EPS of $0.47, essentially in line with consensus of $2.49B and $0.47, though at the high end of guidance for $2.39B-$2.49B in revenue and $0.45-$0.48 in PF EPS.
"Key topics we'll be focused on beyond usual operations: 1) Durbin-we don't expect management to say a lot given unknowns around the bill, but given potential secondary effects, we do expect some color on ACH contribution and how PayPal may be able to offset potentially higher bank fees; 2) FX impact-the Euro has weakened since 3Q earnings and both Marketplaces & PayPal have at least 20%+ exposure to cross-border; 3) Balance sheet-we're modeling $100M in share buybacks for 4Q but that could be conservative given $300M in 3Q and recent $2B authorization; 4) 2011 guidance-we're essentially in line with the Street at $1.85 for 2011 and we'd expect an in-line guide given Durbin unknowns and FX, though some are looking for Marketplaces margin upside; 5) Feb 10 investor day-likely to be PayPal and mobile heavy."
Barclays reiterates an "Equalweight" rating on eBay (EBAY), which was trading at $29.15, down $0.31, or 1.04 percent, as of1:51 PM EST. Barclays has a price target of $29 on eBay.
Barclays says, "We expect overall results to be at the high end of guidance or slightly above-note that over the last 8 quarters eBay has beaten consensus earnings by -$0.024 on average. We project revenue of $2.48B (+4.7% Y/Y) and PF EPS of $0.47, essentially in line with consensus of $2.49B and $0.47, though at the high end of guidance for $2.39B-$2.49B in revenue and $0.45-$0.48 in PF EPS.
"Key topics we'll be focused on beyond usual operations: 1) Durbin-we don't expect management to say a lot given unknowns around the bill, but given potential secondary effects, we do expect some color on ACH contribution and how PayPal may be able to offset potentially higher bank fees; 2) FX impact-the Euro has weakened since 3Q earnings and both Marketplaces & PayPal have at least 20%+ exposure to cross-border; 3) Balance sheet-we're modeling $100M in share buybacks for 4Q but that could be conservative given $300M in 3Q and recent $2B authorization; 4) 2011 guidance-we're essentially in line with the Street at $1.85 for 2011 and we'd expect an in-line guide given Durbin unknowns and FX, though some are looking for Marketplaces margin upside; 5) Feb 10 investor day-likely to be PayPal and mobile heavy."
Barclays reiterates an "Equalweight" rating on eBay (EBAY), which was trading at $29.15, down $0.31, or 1.04 percent, as of1:51 PM EST. Barclays has a price target of $29 on eBay.
Wednesday, December 22, 2010
Morgan Stanley (NYSE:MS) Says eBay (Nasdaq:EBAY) Sell-Off Overblown
Commenting on the recent sell-off of eBay (Nasdaq:EBAY) shares, Morgan Stanley (NYSE:MS) analyst Scott Devitt said the shares have been over sold and recommends acquiring shares at this time.
DeVitt said, “eBay’s turnaround is on track and (we) are buyers as eCommerce trends have exceeded expectations this holiday season and could act as a catalyst into eBay’s February analyst day."
Most of this is in relationship to government interference via new regulations in the debt card segment, as new rule regarding interchange fees were put in place.
DeVitt recommended investors to focus on PayPal's positive trends and the mobile operations of the company, rather than the new fees.
Morgan Stanley has eBay as a "Long-Research Tactical Idea." eBay was trading at $28.79, up $0.14, or 0.49 percent, as of 12:12 PM EST.
DeVitt said, “eBay’s turnaround is on track and (we) are buyers as eCommerce trends have exceeded expectations this holiday season and could act as a catalyst into eBay’s February analyst day."
Most of this is in relationship to government interference via new regulations in the debt card segment, as new rule regarding interchange fees were put in place.
DeVitt recommended investors to focus on PayPal's positive trends and the mobile operations of the company, rather than the new fees.
Morgan Stanley has eBay as a "Long-Research Tactical Idea." eBay was trading at $28.79, up $0.14, or 0.49 percent, as of 12:12 PM EST.
Monday, December 20, 2010
Bank of America (NYSE:BAC) Refuses to Process Wikileaks Transactions
Bank of America (NYSE:BAC) has joined the bandwagon of companies who will no longer process transactions for Wikileaks, which include MasterCard (NYSE:MA), Visa (NYSE:V), PayPal (Nasdaq:EBAY) and Amazon.com (Nasdaq:AMZN).
They said in a statement, "This decision is based upon our reasonable belief that WikiLeaks may be engaged in activities that are, among other things, inconsistent with our internal policies for processing payments."
BofA didn't identify what exactly those inconsistencies entailed.
Most of this is in relationship to handling donations from people offering support to Wikileaks and its efforts to release information to the public which is considered in some cases controversial in nature.
Bank of America has been identified as one of the institution whick Wikileaks has a plethora of informatation on, and could have that uploaded to the Internet, although it's questionable if there's really anything that would be revealed that hasn't been sifted through already, as it's been some time since Wikileaks obtained the documents.
Wikileaks responded to the move by Bank of America, saying, "We ask that all people who love freedom close out their accounts at Bank of America." Businesses were also asked to switch their accounts from the bank.
They said in a statement, "This decision is based upon our reasonable belief that WikiLeaks may be engaged in activities that are, among other things, inconsistent with our internal policies for processing payments."
BofA didn't identify what exactly those inconsistencies entailed.
Most of this is in relationship to handling donations from people offering support to Wikileaks and its efforts to release information to the public which is considered in some cases controversial in nature.
Bank of America has been identified as one of the institution whick Wikileaks has a plethora of informatation on, and could have that uploaded to the Internet, although it's questionable if there's really anything that would be revealed that hasn't been sifted through already, as it's been some time since Wikileaks obtained the documents.
Wikileaks responded to the move by Bank of America, saying, "We ask that all people who love freedom close out their accounts at Bank of America." Businesses were also asked to switch their accounts from the bank.
Monday, December 6, 2010
eBay's (Nasdaq:EBAY) Caves on WikiLeaks, Freezes Account
Although not admitting it was political pressure which resulted in the freezing of the PayPal account of WikiLeaks by eBay (Nasdaq:EBAY), there can be no doubt that is in fact the case.
Cited as the reason for taking the actions was because WikiLeaks was used to "encourage, promote, facilitate or instruct others to engage in illegal activity." This allegedly broke the terms of service of the account with Paypal.
It had nothing to do with the incompetence of the Obama administration or bringing to light of some of the hidden deeds the government took part in with other governments, and with entities in the U.S. as well.
This could slow down WikiLeaks significantly because it was the major revenue source for the website, as PayPal allows clients to place a donation button on a site and for donors to pay with little more than a click of the computer mouse.
Attempts to shut down the site have been futile so far as mirror sites crop up as soon as the shut down in one country. Most of the information is already out their and downloaded to storage devices anyway, so there's nothing that can be done to stop the information from being reviewed and commented on.
There has been strong support and opposition on both sides of the issue concerning the release of the information. There are those hailing the transparency finally brought to government actions, and those opposing it, saying it could harm many people identified as providing information that could result in retribution, among other issues.
Cited as the reason for taking the actions was because WikiLeaks was used to "encourage, promote, facilitate or instruct others to engage in illegal activity." This allegedly broke the terms of service of the account with Paypal.
It had nothing to do with the incompetence of the Obama administration or bringing to light of some of the hidden deeds the government took part in with other governments, and with entities in the U.S. as well.
This could slow down WikiLeaks significantly because it was the major revenue source for the website, as PayPal allows clients to place a donation button on a site and for donors to pay with little more than a click of the computer mouse.
Attempts to shut down the site have been futile so far as mirror sites crop up as soon as the shut down in one country. Most of the information is already out their and downloaded to storage devices anyway, so there's nothing that can be done to stop the information from being reviewed and commented on.
There has been strong support and opposition on both sides of the issue concerning the release of the information. There are those hailing the transparency finally brought to government actions, and those opposing it, saying it could harm many people identified as providing information that could result in retribution, among other issues.
Thursday, December 2, 2010
eBay (Nasdaq:EBAY) Under Valuation, Earnings Pressure
Over the next couple years eBay (Nasdaq:EBAY) will struggle to retain market share, according to Piper Jaffray’s Gene Munster.
Canaccord commented saying, "Despite a major Black Friday boost in online shopping, shares of Internet retail giant eBay fell on Tuesday after analysts at Piper Jaffray and Stifel Nicolaus downgraded the company amid earnings and valuation concerns. Specifically, Piper Jaffray’s Gene Munster harbours worries over the tech darling’s rate of innovation, writing, “While we are positive on eBay's leadership in mobile and think PayPal is a great business, we don't believe the pace of innovation from marketplace is fast enough to stall market share losses any time in the next 2 years, which could hamper earnings growth for the overall company despite 30% annual profit growth from Payments.” Likewise, Jordan Rohan of Stifel Nicolaus downgraded eBay, mostly because of a lack of upward earnings momentum. Margins at eBay’s online payment service Paypal, “while stable, could reduce total company margins over the next two years, as Paypal approaches half of total revenues.” According to eBay, online broker PayPal enjoyed payment growth of 27% on Black Friday, up from 20% a year ago. Highlighting the growing popularity of smartphones and other mobile devices, eBay noted that PayPal mobile payments grew a massive 310% compared to the prior year. Rohan warns nonetheless that eBay investors should not get carried away with the impact of the holiday season. "Our take on holiday e-commerce is that trends have been healthy, but not beyond expectations.”
eBay closed Wednesday at $29.26, rising by $0.12, or 0.41 percent.
Canaccord commented saying, "Despite a major Black Friday boost in online shopping, shares of Internet retail giant eBay fell on Tuesday after analysts at Piper Jaffray and Stifel Nicolaus downgraded the company amid earnings and valuation concerns. Specifically, Piper Jaffray’s Gene Munster harbours worries over the tech darling’s rate of innovation, writing, “While we are positive on eBay's leadership in mobile and think PayPal is a great business, we don't believe the pace of innovation from marketplace is fast enough to stall market share losses any time in the next 2 years, which could hamper earnings growth for the overall company despite 30% annual profit growth from Payments.” Likewise, Jordan Rohan of Stifel Nicolaus downgraded eBay, mostly because of a lack of upward earnings momentum. Margins at eBay’s online payment service Paypal, “while stable, could reduce total company margins over the next two years, as Paypal approaches half of total revenues.” According to eBay, online broker PayPal enjoyed payment growth of 27% on Black Friday, up from 20% a year ago. Highlighting the growing popularity of smartphones and other mobile devices, eBay noted that PayPal mobile payments grew a massive 310% compared to the prior year. Rohan warns nonetheless that eBay investors should not get carried away with the impact of the holiday season. "Our take on holiday e-commerce is that trends have been healthy, but not beyond expectations.”
eBay closed Wednesday at $29.26, rising by $0.12, or 0.41 percent.
Wednesday, December 1, 2010
eBay (NASDAQ:EBAY) Faces FOREX Challenges in Latest Quarter
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.
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.
Subscribe to:
Posts (Atom)