EBay Profits Prove the Power of Mobile

Companies that have centered their business strategy on the web are feeling the heat from the push toward mobile. This is especially true for ecommerce companies, as mobile payment and purchase apps become more prominent.

However, a lot of companies are reaping the benefits from revamping their strategy to include mobile. Take eBay for example, who just announced a 15% revenue increase this quarter. Tom Taulli of MSN cites the eBay mobile app as the source of the company’s growth:

“Ebay also has created compelling mobile apps, which saw more than 100 million downloads in the quarter, and were used by sellers to post roughly 2 million items per week.

It’s inevitable that the smartphone will become the wallet of the future, considering it’s ideal not just for purchases but for doing research on the products you’re about to buy. And through its numerous deals with PayPal, eBay certainly is poised to be a huge beneficiary of this e-commerce trend.

EBay shares are up more than 60% this year. But despite that fantastic run, eBay still fetches a reasonable valuation. It currently trades at a price-to-earnings ratio of only 17 — not cheap but certainly still compelling in light of eBay’s full-year revenue growth rate of roughly 20%.”

If EBay continues to grow and improve their mobile apps, the company could see some long-standing growth. Have you used the Ebay mobile app? Let us know what you think about it in the comments section.


Leave a Reply

Your email address will not be published. Required fields are marked *