Strong eBay results bode well for Amazon
By Alistair Barr
SAN FRANCISCO (Reuters) - EBay Inc's strong first quarter bodes well for Amazon.com Inc's results next week - especially Amazon's own online Marketplace business and e-commerce in general, analysts said on Thursday.
EBay shares surged to a six-year high after quarterly results showed the company's efforts to turn around its online Marketplaces business are paying off.
The results suggest "e-commerce growth is alive and well and that should bode well for others in the space, namely Amazon," said Scott Tilghman, an analyst at Caris & Company.
Amazon is scheduled to report first-quarter results on April 26. Wall Street expects the world's largest Internet retailer to report earnings of 7 cents per share on revenue of $12.86 billion, according to Thomson Reuters I/B/E/S.
Following eBay's results, Amazon's first-quarter revenue may match or beat Wall Street's forecast, said Gene Munster, an analyst at Piper Jaffray. He was expecting Amazon revenue to be $12.6 billion before eBay reported.
"EBay's marketplace remains healthy, suggesting macro e-commerce is healthy," Munster wrote in a Thursday note to investors.
PLATFORMS, NOT RETAIL
As the dominant Internet retailer, Amazon takes on inventory and sells millions of products online. But the company has also run its own Marketplace business for several years, allowing third-party merchants to sell to its customers through the platform, like eBay. Continued...