eBay Inc (NASDAQ:EBAY) Struggles With Low Sales as Amid Heavy Competition From Amazon.com, Inc. (NASDAQ:AMZN)

0
788

eBay Inc (NASDAQ:EBAY) has been experiencing heavy competition from other e-commerce players, mainly Amazon.com, Inc. (NASDAQ:AMZN) and it has thus not been easy to maintain admirable sales.

Luckily, the company was able to bag sales that were higher than analysts had predicted for the second quarter period. The online retailer has been having it rough, and the breakup of with Paypal Holdings Inc (NASDAQ:PYPLV) highlighted the height of its problems. On Thursday, the company reported that its quarterly revenues amounted to $4.68 billion, compared to the $4.49 billion estimate that had been set by analysts. The sales value also dropped by 3% to $2.1 billion for the online division of the business. Revenues from PayPal were more than the sales revenues for the second consecutive quarterly period.

Now that the two firms have ended their partnership, analysts are eager to see how the company will perform as a single entity. The company has been slow growth since the hack in its user data that took place last year. As a result, the company prompted its users to change their passwords. The company has also been suffering from low traffic since Google enforced its mobilegeddon.

According to Gil Luria, from Wedbush Securities, eBay has been under constant competitive pressure from its rivals including Amazon in the e-commerce industry. The situation doesn’t seem to be getting any better for the company. EMarketer estimated that global online sales would reach $1.59 trillion in 2015. The company currently has an average of 157 million buyers on the website and the annual average sales amount to $80 billion. The firm announced the plans to separate with PayPal a year ago.

PayPal has 165 million accounts, and 24% of its transactions are on eBay. Its earnings range from $1.23 to $1.27 a share. EBay’s estimated earnings after the separation range from $1.72 to $1.77 a share. Analysts expect its performance for the third quarter to drop. The firm’s value dropped by 0.2% to $63.44 on Wednesday.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.