What eBay Inc (EBAY)’s Earnings Report Tells Us

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The other company discussed was Global Payments Inc (NYSE:GPN).

Global Payments generates its revenue from high-volume electronic transactions. Its volumes have been increasing nicely, thanks to Independent Sales Organizations in the U.S., along with heightened business with gaming companies and international expansion.

However, costs edged up a bit as a proportion of revenue recently, partly due to commissions expense jumps. The resulting sell-off of the company’s shares may well have created a buying opportunity for those looking to invest in the sector.

Coming back to eBay, if you believe like I do that it is operating in a conducive environment for growth, marked by the proliferation of smartphones, tablets, and so forth, while also factoring in its position in advanced payment technologies, the shares may be appealing. The company plans to utilize capital for acquisitions, in addition to its share repurchase program, and the stock could be positively impacted.

On the other hand, growth at PayPal might slow further with the entrance of more competition like the entities mentioned above. In sum, the soft outlook was only a modest setback, and eBay Inc (NASDAQ:EBAY) shares look to be a good holding for most portfolios.

The article What eBay’s Earnings Report Tells Us originally appeared on Fool.com.

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