Image Credit: Brian C
Ebay today reported its third-quarter earnings for 2014, with revenue of $4.4 billion and GAAP earnings of $0.54 per diluted share (EPS). Analysts had expected earnings of $0.67 per share on revenue of $4.37 billion.
In its 2013 Q3 the company reported revenue of $3.9 billion.
Ebay’s Q3
Ebay’s Stubhub reveals 1,000 customers were hacked.
Ebay will spin off PayPal into a separate publicly traded company
Ditching Ebay is the only way PayPal can grow
PayPal embraces Bitcoin
Ebay’s third quarter results arrive just after the announcement that the company will spin off PayPal, its digital payments company, which is facing increasing competition from a variety of competitors including Apple. The iPhone purveyor is expected to roll out its new digital payment method tomorrow at an event in the Bay area. The market responded positively to news of the spin off, with stock prices rising 7.5 percent to $56.63 a share by market close.
However, it’s not all good news for eBay. A massive security breach in Q2 may have damaged the marketplace’s credibility with consumers. A second breach at Stubhub didn’t restore confidence. Plus, PayPal largely carried Ebay’s revenue growth last quarter. In battling problems around public perception, the second hand marketplace is also fighting an increasing number of new online marketplaces, not to mention giant competitors like Amazon.
While investors may be excited about PayPal’s opportunity to better compete as its own company, there are still many questions about what Ebay will do to better grow revenue without PayPal.
In normal trading, Ebay was down by .69 percent.
eBay Inc. connects millions of buyers and sellers globally on a daily basis through eBay, the world's largest online marketplace, and PayPal, which enables individuals and businesses to securely, easily and quickly send and receive onl... read more »
PayPal is the faster, safer way to pay and get paid online. The service allows members to send money without sharing financial information, with the flexibility to pay using their account balances, bank accounts, credit cards or promot... read more »