EBay (EBAY) may seem like a dinosaur to many online shoppers, but the company is poised for major growth, one stock analyst said, and not just because of its marketplaces.Its PayPal virtual transaction business will be the company's main growth driver, according to Scott Kessler, Internet Equity Analyst at S&P Capital IQ.
"PayPal has become the #1 payment option the world over when it comes to virtual transactions," Kessler told "Big Data Download."
Kessler expects the PayPal portion of eBay's business to grow by 24 percent this year and 22 percent next year. That's despite increased competition from smaller companies such as Stripe, which enables online payments, and Square, which lets users accept payments on their mobile devices.
EBay is boosting its mobile presence, which is expected to drive sales growth. Mobile transactions are a growing market, overall: About $20 billion in vendor sales are expected via mobile this year, up from about $13 billion last year, thanks to refreshed iPhone and Android apps.
Shoppers are showing signs of being more interested in shopping on eBay via their mobile devices, at least according to Yahoo! web search data. Searches for the term "eBay mobile" jumped 930 percent in the 30 days ending April 7 compared with the same period a year ago.
Search data also suggest that collectors are more willing to spend on those collectible items they put off buying in the last few years. Searches on Yahoo! for eBay collectibles were up 830 percent in the past month vs. a year ago.
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