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Author: TMFJoeInvestor Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25833  
Subject: Another Great Quarter Date: 7/19/2012 9:52 AM
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Hey Folks,

eBay is a recommendation of mine over at Inside Value. I thought you folks might be interested in the notes I just lobbed up for our members on our boards. Cheers.

eBay is up 8% this morning on yet another wonderful quarter. PayPal continues to shine -- 26% sales growth on a 13% growth in active users and continued growth in transactions per user -- but the quiet star of this quarter in my eyes was the marketplace business, which posted its strongest growth since 2006. Active user growth is accelerating and so are purchases per user.

Mobile continues to be a huge strong point. eBay now sees both eBay and PayPal doing more than $10 billion in transactional volume in 2012. Small in eBay's big picture, but stunning in absolute terms and compared to last year. For PayPal, that would be 150% growth over last year's mobile volume.

Here's an amazing stat that encapsulates how far we've already come with mobile commerce: More than 8,000 cars are sold each week through eBay Mobile apps. Here's another: A woman's handbag sells every 30 seconds. If you somehow doubted mobile commerce before, welcome to the new reality. eBay is incredibly well positioned here both on marketplaces and payments.

One more thing: My respect for CEO John Donahoe and his turnaround prowess grows every quarter. He's done a remarkable job of turning around eBay's marketplace business by decluttering, simplifying, emphasizing mobile, and making the shopping experience more like Amazon and less like a flea market. That was no small task and many folks complained along the way, no doubt the army of senior execs he fired in his first year while cleaning out Meg Whitman's dead wood. He's also done a wonderful job of fostering growth at PayPal, setting it up for future success, and using smart tuck-in acquisitions to bolster its capabilities and reach.

All in all, eBay is humming and I expect to continue owning these shares for a long time to come. Or, at least, through the PayPal spin-off I bet happens in 2014. :-)

Joe
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