Friday , 22 March 2019
Breaking News
eBay stock soars 9% without PayPal after reporting stronger than expected Q3

eBay stock soars 9% without PayPal after reporting stronger than expected Q3

Now that eBay is officially separated from PayPal, investors want to see that the auction site still has room to grow.

This quarter eBay posted revenue of $2.1 billion and earnings of $0.43. Analysts were anticipating earnings of $0.40 on revenue of $2.09 billion. Gross merchandise volumes saw a six percent uptick quarter over quarter.

The company also repurchased $599 million worth of its own stock this quarter, an attempt at showing confidence in the business. EBay plans to repurchase an additional $2.4 billion.

During the quarter eBay was busy cleaning house. Over the summer, it killed off its struggling on-demand delivery service, eBay Now. It also folded its stand-alone mobile apps for valet selling, fashion, and autos auctions into the main eBay mobile app. The addition of these three stand-alone marketplaces was a part of a major overhaul to its app. The redesigned app focused on three core ideas: buying, selling, and tracking your activity.

Ebay has also begun toying with a free two-day shipping subscription in Germany — a move to rival Amazon.

In addition to refining products, eBay also agreed to sell-off its enterprise unit for $925 million this quarter as well a part of its stake in Indian ecommerce platform, Snapdeal. Don’t forget, the company also promised to shave off 2,400 members of its staff in 2015.

But eBay’s growth is still slow and the company seems to be forever recovering from a hack last year of its user data. EBay also hasn’t been able to get better rankings for its products in Google Search, since Google slapped it with a penalty for certain search optimization tactics it was using.

Still, EBay’s best efforts may have some investors convinced, its stock is up 9 percent in after-hours trading.

Article Source

Share and Enjoy

Leave a Reply

Your email address will not be published. Required fields are marked *