Morgan Stanley's Top Takeaways from Meeting eBay's Management

Morgan Stanley recently met with eBay Inc's EBAY CEO and management team about PayPal's spinoff and the future of the payments company. PayPal, which currently processes one out of every six digital payment dollars, is focused on growing accounts and frequency of use, according to Morgan Stanley analysts. Here are Morgan Stanley's top takeaways.

1. PayPal expects to grow active accounts at its current pace into the foreseeable future. PayPal has seen growth of 20 million active accounts each over the past two years.
2. EBay is not pulling back from offline payments. PayPal expects to address the opportunity offline via mobile.
3. PayPal disclosed "three interesting metrics." Venmo – the online payment processer popular with Millennials – is growing 6x year-over-year. Additionally, one in three U.S. adults use PayPal, suggesting that half of all users are international. Finally, half of PayPal's 16,000 employees are customer service – which Morgan Stanley said speaks to "the scale PayPal has compared to its competitors."

Morgan Stanley rates eBay as Equal-Weight with no price target. Recently, eBay traded at $58.80, up 4.9 percent year-to-date.