PayPal's Earnings Show Its Future Is Intact

Going into PayPal's (NASDAQ: PYPL)first-quarter financial report, investors were still digesting the announcement made in February by eBay (NASDAQ: EBAY). The company revealed that it had decided to process its own payments as soon as allowable under its separation agreement with PayPal. The news sent PayPal's shares falling by as much as 10%, while eBay climbed 15%.

As I pointed out at the time, many investors didn't understand the context of this announcement, and that it wasn't unexpected -- or even that big of a deal.