EBay reported its fourth quarter earnings for the bell. Investors were closely watching the holiday quarter to see if it met expectations, which it did. The stock rose 7% in initial after hours trading.
Gross merchandise volume, a metric of that shows the total dollar value of all purchases on eBay’s platforms, came in at $22.3 billion, when analysts were expecting $22.4 billion. Adjusted earnings per share were 54 cents, when Wall Street predicted 53 cents. Revenue was on par with the $2.4 billion analysts expected.
Some of eBay’s recent growth stems from its “structured data” initiative, which essentially means they’ve been using keyword tags to improve Google search results and make things easier to find on the website.
They have also expanded their fixed-price merchandise business to compete more directly with Amazon and offset their shrinking auctions business.
After splitting from PayPal in 2015, eBay was mainly left with its name-bearing marketplace business and StubHub, their platform for sports and concert tickets. StubHub has been one of their bigger growth engines in the past year and investors will be watching it to see if it continues.
EBay shares are up about 16% since last year.
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