eBay profit rises as shoppers turn to smartphones

Online auction and financial transactions powerhouse eBay said Wednesday that profit in the recently ended quarter climbed as commerce shifts to smartphones and tablet computers. The Silicon Valley company reported that its net income in the quarter ending September 30 rose to $490.5 million as revenue leapt 32 percent to $3 billion. "Our company reported another strong quarter, with eBay, PayPal and GSI each performing well," said eBay chief executive John Donahoe. "Mobile commerce continues to accelerate as consumers change the way they shop and pay." EBay expected that the value of merchandise bought or sold at eBay with mobile devices this year would near $5 billion and that its PayPal online financial transactions service would handle $3.5 billion in mobile payments. "Mobile is one way online and offline shopping are blending into a single commerce environment," Donahoe said. EBay stock price fell about four percent to $31.92 per share, evidently due to the company tempering its outlook for the near future.