(Things aren't perfect. Some may argue that eBay's getting too greedy. After all, total payment volume surged 24% (which is great on a mere 13% year-over-year uptick in active registered users) but revenue spiked 28%. Marketplace revenue climbed 16%, though the gross merchandise value exchanged only grew by 10%. In other words, eBay's milking more money out of its users -- and that's not going to sit well with folks that are already skeptical about eBay's moves in recent years.
Squeezing more money out of its users should result in chunkier margins, but why did adjusted net income only grow by 15%? GSI may be a drag here, but keep in mind that even backing out GSI's revenue would still result in growth headier than 15%.
Investors fretting about the margins aren't going to like eBay's guidance for all of 2012. The company is targeting tweaked earnings of $2.25 a share to $2.30 a share this year on revenue of $13.7 billion to $14 billion. The pros were actually expecting $2.31 a share in profitability on a little less than $13.7 billion. The top-line guidance is high, but the bottom-line company target is too low.)
Nice to see Ebays greedy trend is now being recognized and discussed. It has been ebay policy for the past 6 years to squeeze profits from the sellers. It is now showing up in core markets and will be a concern for investors going forward. If it wasn't for Paypal leading the growth here it would have been a big concern a few years ago.