eBay and Amazon.com Under Review: Mail Order Stocks on the Rise

Feb 12, 2013, 08:00 ET from StockCall.com

LONDON, February 12, 2013 /PRNewswire/ --

Increasing adoption of mobile devices for e-commerce and payment purposes enabled eBay Inc. (NASDAQ: EBAY)to outdo its original forecast for the year 2012. In 2012, it marked about $175 billion in commerce sales revenue giving it roughly a 19% market share in global e-commerce space and almost 2% of total global retail market share. eBay competes mainly with Google, Square, and in the online payments category; however its prime competitor is Amazon.com Inc. (NASDAQ: AMZN) in the e-commerce space. StockCall has released free charting and technical research on these two aforementioned companies. Register to read these reports at


PayPal a Massive Contributing Factor to eBay

eBay's revenue explosion was underpinned by growth in Total Payment Volume (TPV). Growth came from various revenue streams with international TPV bloating by 28%. International TPV contributed 48% of the entire TPV of eBay in the last quarter of 2012. Similar efforts to push its global and offline presence could lead to PayPal recording similar growth rates in 2013, thus allowing eBay to probably beat its own estimates. This estimate is underpinned by a growth recorded in mobile adoption in the last few years, which led to PayPal's mobile payment revenue increasing exponentially, exhibiting a 250% growth to $14 billion last year. Mobile payments are responsible for about 10% of PayPal's total payment revenues last year, and the company expects it to hit $20 billion mark by 2013. Sign up for the free report on eBay Inc. at


Like PayPal, Marketplaces growth was affected by steadily growing popularity of its mobile applications. eBay expects Marketplaces mobile commerce revenues to surpass the $20 million mark in 2013. In 2012, mobile brought over 4.3 million new users to eBay and created $13 billion in mobile commerce sales volume. This is exceptional considering it is nearly twice the sales volume from 2011 and higher than the original $10 billion forecast for 2012

Amazon.com Last Quarter Result

The Electronic and General Merchandise SBU impacted the Amazon.com's revenue growth in 2012 as sales jumped by 35% to $38.6 billion. Media revenues also exhibited robust growth at 12% during the year and posted the $20 billion figure. The division recorded 15% growth in U.S. and Canada collectively and 10% in overseas markets. This enabled the company to report an EBITDA of $405 million in Q4, up from a disappointing operating loss of $28 million in Q3 2012. Gross margins also improved considerably from 22.4% in 2011, to 24.8% in 2012, assisted heavily by the success of third party seller. Amazon.com Inc. free technical report can be accessed by signing up at


Amazon.com announced a collective revenue and EBITDA of $61 billion and $3.8 billion respectively in 2012.

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