EBay Thrives on Mobile Shoppers
Consumers' increasing comfort with mobile shopping and the halo effect it is having on other aspects of eBay's business were the clear highlights from the second quarter.
Our favorable long-term view on eBay (EBAY) remains fully intact following a strong second-quarter showing from the company. PayPal continues to evolve into a more diversified facilitator of commerce through new offline transaction-processing capabilities, but in our view, consumers' increasing comfort with mobile shopping and the halo effect it is having on other aspects of eBay's business were the clear highlights from the quarter.
With an expansive network of buyers and sellers and leading payment-processing innovations, we've long held the position that eBay was well-positioned to capitalize on consumers' gravitation toward mobile shopping and merchants' increasing acceptance of mobile payment processing. However, management's updated outlook for $10 billion in mobile gross merchandise volume transacted and $10 billion in mobile payment volume processed in 2012--a notable increase from the $8 billion and $7 billion forecast earlier in the year and more than double the $5 billion and $4 billion in volumes last year--was modestly ahead of our expectations and makes eBay one of the early leaders in this rapidly growing field.
R.J. Hottovy does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.