eBay gets boost from mobile bidders
eBay reports fourth-quarter earnings amid high expectations, as tablet and smartphone user bid up business on the online auction site.
eBay reports its fourth quarter results today, after a year in which its stock rose more than 60 percent. One of the big reasons for investor enthusiam is eBay's growing business from tablets and smartphones.
“People take these tablets and treat them as a part of their family. They’re always with them,” says Macquarie senior Internet analyst Ben Schachter.
This constant digital connection means more opportunities for eBay, from breakfast until bedtime.
“For e-commerce companies, the analogy is your store is open longer hours with better lighting,” Schachter says.
eBay says nearly two million new customers signed up this year using a mobile device, and these are prime clients, says Sheryl Kingstone, research director at the Yankee Group.
“The iPad changed everything because the tablet owners are a lucrative shopping demographic,” she says.
eBay forecast $10 billion in mobile auction sales this year, and analysts think that number could be higher when today’s results are announced.