Cramer on eBay's Under-the-Radar Earnings

eBay delivered the best under-the-radar results yet this earning season, Cramer said Monday.

With all the excitement over Apple’s staggering results and the debate over the debt ceiling, last week’s earnings report from eBay got lost in the shuffle. But the “Mad Money” host doesn’t expect the results to stay overlooked for long.

”When you look under the hood, you can understand why eBay is such a terrific buy right here,” he said.

The company’s greatest success is PayPal, Cramer said. With 100 million users, it accounts for 41 percent of eBay’s total sales. It posted a 34 percent increase in net total payment volumes and the strongest revenue growth in three years.

What’s more, PayPal expects to do $2 to $3 billion worth of payments this year via mobile device. It will also be rolling out point-of-sale technology next year that will allow customers to use PayPal at grocery stores, retailers and anywhere else with a point-of-sale terminal.

Other businesses of eBay are also doing well. Its marketplace, online classifieds and Bill Me Later businesses are all up. Plus, Cramer thinks it may have a chance to compete with Amazon thanks to its acquisition of GSI Commerce, which helps retailers develop and operate an e-commerce presence.

The stock sells for just 14.5 times next year’s earnings estimates with a 12 percent growth rate and Cramer thinks there is a lot more upside going forward.

“This is not the same old eBay,” Cramer said. “This is now a fabulous Internet commerce company that trades like it's the same old eBay. That's ridiculous. It's worth much, much more, and I think it's only a matter of time before others figure it out.”

When this story was published, Cramer's charitable trust owned Apple.

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