eBay Target $ 67

Image representing eBay as depicted in CrunchBase

Image via CrunchBase

EBAY : NASDAQ : US$54.22
BUY 
Target: US$67.00

COMPANY DESCRIPTION:
Founded originally as an online auction site in 1995, eBay has evolved over the years and aspires to now be recognized as an eCommerce enabler. The company is headquartered in San Jose, California, and operates three main business segments: Marketplaces, Payments,
and GSI.

UPGRADE TO BUY ON SUSTAINABLE GROWTH AND PAYPAL OPTIONALITY
Investment recommendation
After sitting out the first half on the bench, we are upgrading eBay from Hold to BUY for the second half of the game. We believe Marketplaces will
continue to be a stable growth engine and that PayPal can surprise to the upside. eBay is innovating along many fronts which may require
expanded investment/acquisitions. However, we believe in eBay’s vision of synching online and offline commerce and that with ~112 million eBay
accounts and ~123 million PayPal accounts actively engaged on mobile, eBay is uniquely positioned to capitalize on this opportunity.
Investment highlights
 At the analyst day, management outlined several initiatives that should keep Marketplaces’ growth rate high: global shipping, BRIC expansion, reinventing local shopping, and continued mobile emphasis.
 We believe Payments growth could surprise to the upside as PayPal could gain significant share of future blended offline/online payments.
 We believe Q1 looks mostly in line so far, despite slightly weaker Channel Advisor data, although our revenue estimate is slightly below consensus. We are raising EPS estimates for 2014/2015 from $3.23/$3.66 to $3.34/$3.89.
Valuation
We raise our price target to $67. Our new target is based on 20x our new 2014 EPS estimate of $3.34.

Yahoo! Update Web Portal Turnaround ?

Marissa Mayer

Marissa Mayer (Photo credit: Wikipedia)

Yahoo! (YHOO : NASDAQ : US$16.67)

Oct 24

You might find all of this through Google.

Yahoo! touched a 52-week high after new CEO Marissa Mayer outlined her turnaround strategy for the biggest U.S. web portal, emphasizing mobile technology and personalized services.

The third-quarter results announced Monday weren’t astounding, but they were better than analysts anticipated. Most importantly, Yahoo!’s net revenue crept higher for the third-straight year. Mayer, the company’s fifth CEO in four years, said on a conference call with analysts that she aims to grow as fast as competitors in online search, display advertising, mobile applications, and products such as email.

Mayer also plans to focus on small acquisitions of less than $100 million rather than large deals, and expects to move workers around within Yahoo! instead of cutting large groups of employees. “Our vision and direction for Yahoo! is to make the world’s daily habits inspiring and entertaining,” Mayer said. “We’ll become a growth company by inspiring and delighting our users

Groupon Goes Mobile

Logo of Groupon

Logo of Groupon (Photo credit: Wikipedia)

Sept 20

Groupon (GRPN : NASDAQ : US$5.34)

Excitement…for the first time in a while!

 

Shares of Groupon jumped after the online deal company launched a payment service that allows businesses to accept credit cards using an iPhone or iPod Touch, becoming the latest company to enter the growing mobile payments market.

Groupon said the new service lets restaurants, salons and spas, retailers and other local businesses accept credit card payments at a lower rate than other providers. Groupon will charge 1.8% for MasterCard, Visa and Discover cards, on top of a 15-cent fee per swipe. For American Express cards, it charges 3% plus the 15-cent fee. The services are aimed mainly at small businesses that, until now, haven’t accepted credit card payments because of high transaction fees. In some cases those businesses lacked the technology required to process credit cards.

The service takes advantage of the proliferation of smartphones in recent years.

Groupon has seen a sharp decline in its stock price since going public late last year. With Groupon  Payments, the company is trying to broaden the array of services it offers.

 

 

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