Fast Growth in eBay Inc (EBAY) Earnings Could Send Shares Soaring

Another big threat to eBay, though, is the Internet sales tax, which passed in the Senate back in May. The bill would authorize states to tax online transactions that have previously gone untaxed, creating a big new source of revenue for state governments but costing eBay, Amazon, and other online retailers that don’t have a brick-and-mortar presence in many of the states in which their customers live a huge competitive advantage. So far, the House hasn’t taken up the bill, and there are signs of some resistance to the bill’s passage.

In the past week, eBay Inc (NASDAQ:EBAY) shares have risen sharply. With June same-store sales coming in up 17.7% according to ChannelAdvisor, the total quarterly comps for the company were up more than 18%. That bodes fairly well for e-commerce in general, despite the best efforts of traditional retailers to thwart the advance of technology.

In eBay’s earnings report, watch for the breakdown of results between PayPal and eBay’s Marketplace divisions. If the strength in both areas continues, then eBay could make a powerful one-two punch that could send the stock still higher in the months and years to come.

The article Fast Growth in eBay Earnings Could Send Shares Soaring originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Amazon.com, eBay, and Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Amazon.com, eBay, and Google.

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