eBay: PayPal Revenue To Double By 2011

Where’s eBay’s growth going to come from in the next few years? PayPal, its online payment system, executives said today at eBay’s analyst day in San Jose.

eBay expects PayPal revenues to double by 2011 to roughly $4-5 billion in sales. PayPal reported $2.4 billion of sales last year, or about 30% of eBay’s $8.5 billion of overall sales.

The company also expects Skype to be a $1 billion business in 2011. eBay’s Communications business — Skype — reported $551 million in sales last year. So that’s about 80% growth in three years.

Meanwhile, eBay CEO John Donahoe said that eBay’s core auction business would grow slower than the e-commerce market this year — not surprising. But he said it would “track market growth in 2010 and surpass market growth in 2011,” according to the WSJ. No details on how that’ll happen.

eBay shares closed up 4.8% today at $11.63.

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