How EBay Pulled Off a Strong First Quarter

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April 29 (Bloomberg) –- Bloomberg Contributing Editor Jeffrey Hayzlett, Bloomberg’s Cory Johnson, Matt Miller and Julie Hyman discuss Ebay earnings. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Than estimated.

Coming in at $.70, and that is three cents above estimates, and sales also beat.

Basically the midpoint of the range is right around where analysts were estimate -- estimating it.

That profits up in the first quarter.

As we talked a lot about, paypal really is the cash cow of the business, and these good results, the backdrop is the carl icahn push to have the company separate itself, but also, he has been in negotiations to get some of his representatives on the board of ebay, so that is sort of the background of this.

The results look strong versus what folks were looking for.

They really have become an infrastructure company for not only retailers but for small businesses.

A are starting to compete against the amazons of the world in terms of offering backdoor services to retailers and all of the small businesses that are out there.

One small caveat, it looks like the second quarter forecast for earnings is a little bit shy of estimates, and that might be responsible for the little bit of decline that we are seeing in the stock there.

They have revised their full-year eps estimates.

Paypal?

Total.

Up 27%. it has been fascinating.

This is where all of the growth in the company has been taking place.

Absolutely.

What do you think about carl icahn's push?

People who have come on your show have said that paypal could still be separated and still grow and thrive and still work together with ebay.

There is no reason that they have to be in the same corporate structure to work together.

It is a lot stronger, and i think carl icahn is exactly right.

That is when you make money from other business services.

I think it is a really smart move.

Paypal is a mobile payment system.

They could really rival the best of the mobile payment systems.

Without question.

I think it has been the leader for a long, long time.

One of the points he made, and it is an interesting one, it is tough right now to recruit the top talent at ebay because people want to go where they are seeing lots of growth, and they are seeing lots of momentum in the stock price, and the stock has had some challenges over the course of the last year.

Cory johnson joining us, as well, for more respective, and i was just saying, as you try to recruit the top talent, you are doing that in large part with stock options in the valley, and it has been a rather challenging year for ebay.

Yes, when you look at ebay, uc two things.

There is this commerce business that is still doing wonderfully, and you see them being rebranded as paypal buildings.

You see people coming out of school with great computer computing skills of a looking them.

You see that business growing fast.

I think ebay is not a recent trend.

Ebay versus amazon is a good way to look at the future of retail.

Small business versus walmart.

It is the same kind of battle.

Ebay is a tool for a lot of businesses to take their stuff online.

Maybe you do a little bit of both.

Alibaba has these.

The alibaba model is appropriate.

They take on loads of inventory to sell it.

Alibaba does not do that mostly, and ebay does not do that.

When you look at an ebay, you see that company approaching this problem with commerce in a very different way.

They have got a pile of big data.

We were talking about them keeping it away from them.

Now that it has grown up, it is probably one of the most powerful payment systems online.

Yes, incredible.

Thank you so much, jeff, always

This text has been automatically generated. It may not be 100% accurate.

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