After revealing double-digit revenue growth in its PayPal service, as well as the firm's online marketplaces division, EBay Inc. predicted that its 2010 complete year earnings are set to be above market expectations, a news which sent the value of the firm's shares soaring by 8%.

EBay, which is currently in the middle of a turnaround as it competes with giant rivals like Amazon. com, and other online retailers, has managed to beat estimates pegged by analysts for its closely watched holiday quarter.

The web portal, which works by connecting buyers and sellers over the Internet, has been in the process of revamping its main marketplaces units in order to increase transaction on the EBay site.

During the holiday season quarter, revenue at the company’s online unit surged by 15%. Gross merchandise volume, on the other hand, a measure of the total value of goods sold over EBay, hiked by 24%.

"It's fair to say a turnaround is taking shape. You're going to see more of the same (in 2010). "Pay Pal is hitting the ball out of the park", said Morningstar analyst Larry Witt.

On the back of successful numbers, EBay now expects complete year earnings for 2010 to hit $1.63 to $1.68 per share, on revenue of $8.8 to $9.1 Billion.