Companies that have centered their business strategy on the web are
feeling the heat from the push toward mobile. This is especially true
for ecommerce companies, as mobile payment and purchase apps become more
prominent.
However, a lot of companies are reaping the benefits from revamping
their strategy to include mobile. Take eBay for example, who just
announced a 15% revenue increase this quarter. Tom Taulli of MSN cites the eBay mobile app as the source of the company’s growth:
“Ebay also has created compelling
mobile apps, which saw more than 100 million downloads in the quarter,
and were used by sellers to post roughly 2 million items per week.
It’s inevitable that the smartphone will become the wallet of the future,
considering it’s ideal not just for purchases but for doing research on
the products you’re about to buy. And through its numerous deals with
PayPal, eBay certainly is poised to be a huge beneficiary of this
e-commerce trend.
EBay shares are up more than 60% this
year. But despite that fantastic run, eBay still fetches a reasonable
valuation. It currently trades at a price-to-earnings ratio of only 17 —
not cheap but certainly still compelling in light of eBay’s full-year
revenue growth rate of roughly 20%.”
If EBay continues to grow and improve their mobile apps, the company
could see some long-standing growth. Have you used the Ebay mobile app?
Let us know what you think about it in the comments section.
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