As PayPal split looms, eBay plans to think small
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EBay plans to grow by thinking small as it prepares for life apart from PayPal.
The company says it is focusing on expanding the number of small- to mid-size businesses and individuals who buy and sell items on its popular online marketplace. That comes as it attempts to address investor concerns about how eBay will fare later this year after it spins off its PayPal payments division, which has long been EBay’s fastest growing segment.
EBay’s first-quarter earnings may have mitigated investors’ concern somewhat. The results beat expectations and revenue, excluding the impact of the stronger dollar, grew in both segments. A stronger dollar cuts into revenue generated overseas when it’s translated back into dollars.
Questions & Answers
Q.What is eBay's strategy to achieve growth after separating from PayPal?
What is eBay's strategy to achieve growth after separating from PayPal?
EBay plans to grow by concentrating on small- to mid-size businesses and individual sellers. This involves expanding the number of such users buying and selling items on its online marketplace, which is its new focus.
Q.Why are investors concerned about eBay's future performance?
Why are investors concerned about eBay's future performance?
Investors are concerned because eBay is spinning off its PayPal payments division, which has historically been the company's fastest-growing segment. There are worries about how eBay will fare without this key contributor to its growth.
Q.Did eBay's recent financial results help to ease investor concerns?
Did eBay's recent financial results help to ease investor concerns?
Yes, eBay's first-quarter earnings seem to have somewhat eased investor concerns. The results exceeded expectations, and revenue, when excluding the impact of the stronger dollar, showed growth in both segments.
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