EBay Inc (NASDAQ:EBAY)’s ship on turbulent waters


EBay Inc (NASDAQ:EBAY) will be revealing its third quarter earnings this Wednesday. It is anticipated that although its payment division PayPal will show some significant growth, the overall earning won’t really be that promising especially since PayPal is now a separate entity. This is, perhaps, because of the fact that EBay Inc (NASDAQ:EBAY) was victim of a security breach, which gave the customers second thoughts about making purchases on EBay Inc (NASDAQ:EBAY).

The upcoming earning conference will address the results as well as strategic queries. The second quarter earnings showed waning finances, which also served as the precursor to the predictions of Analysts, who forecast that the 3rd quarter wouldn’t be any different.

EBay Inc (NASDAQ:EBAY) announced sometime ago that it will be parting ways with PayPal next year. This decision gives birth to numerous questions. If PayPal is giving off good results, why does EBay Inc (NASDAQ:EBAY) want to part with it? Perhaps it has something to do with Apple Pay being launched, and instantly taking the fancy of many corporations.

If we observe the first quarter earnings, they were far better than the first quarter earnings of the previous year. The revenues showed 11 percent growth. By the time EBay Inc (NASDAQ:EBAY) entered into the second quarter, the unfortunate security breach happened and all that profit dwindled down to a 9 percent decline. The reason was obvious; customers slowed down buying activity as a precaution. Data compiled by analysts’ shows that sales were slow through July and August, although some improvement was shown in September.

However the improvement in September doesn’t change the fact that EBay Inc (NASDAQ:EBAY) is not performing well in the overall e-commerce market. Bitter rival Amazon.com, Inc (NASDAQ:AMZN) has triumphed EBay Inc (NASDAQ:EBAY), when it comes to sales. This shows that EBay Inc (NASDAQ:EBAY) has issues that it needs to sort out. Also the fact that EBay Inc (NASDAQ:EBAY) will part ways with PayPal, investors are likely to be worried about EBay Inc (NASDAQ:EBAY)’s ability to fight on its own.

PayPal is expected to show continuous growth in the online payment market. They have successfully carried EBay Inc (NASDAQ:EBAY) till now and increased their total payment volume. Account additions were bestowed upon EBay Inc (NASDAQ:EBAY) courtesy to PayPal. Also, PayPal has been making wise decisions, targeting the technological aspects of online payment. PayPal associated itself with Samsung Galaxy S5 for the latter’s finger print reading technology.

PayPal is going strong but it will need all its might and extraordinary results to compete with Apple Pay. Apple Pay is an infant in the market but its popularity will spread like wildfire. As far as EBay Inc (NASDAQ:EBAY) is concerned, the only thing EBay Inc (NASDAQ:EBAY) can do now is to create a strategy to come back stronger than ever. In today’s world of competitive commerce, successive losses can lead to total elimination. EBay Inc (NASDAQ:EBAY) must improve their position in order to withstand the brutal competitiveness of the market.