Split Pay pal failed to reverse ebay business trend

According to foreign media reports, the U.S. e-commerce giant ebay in Beijing time October 16 released the third quarter of 2014 earnings. It is clear that the plan to split pay Pal has failed to reverse the trend of poor ebay business.

In the third quarter of 2014, ebay's net revenue was $4.35 billion, up 12% from $3.89 billion a year earlier, as well as the company's own forecast of $4.3 billion to $4.4 billion, with a net profit of 673 million dollars, down 689 million from the same period last year, according to the report.

Ebay, meanwhile, has set revenue forecasts for the fourth quarter of 2014, but this is less than expected by industry analysts. ebay's fourth-quarter revenue forecasts are relatively weak, mainly because the company's market segment is lagging behind the PayPal sector, highlighting the rationality of the split company in which PayPal is divided.

In a statement released today, ebay expects In the fourth quarter of 2014, revenues would be between $4.85 billion trillion and $4.95 billion trillion, with a diluted net profit of 88 cents to 91 cents per share before a specific project, compared with an average of 5.16 billion and 91 cents for industry analysts surveyed by Bloomberg News.

Before the year-end shopping season, John Donahoe, chief executive of ebay, was Donahoe. In addition to planning to split PayPal payments, ebay will try to reverse the decline in traffic. In May this year, ebay also asked users to change their account passwords after hackers stole a large number of users ' registration information and Google adjusted search results to limit the use of some potential shopper users. Victor Anthony, an analyst at Topeka Capital Markets, an industry analyst, Victor Anthony that ebay now needs to show that its business has recovered from hacking.

"ebay still feels the impact of the data disruption," says Anthony. In the fourth quarter of this year, ebay will have huge revenues, they do not want to enter a standstill, ebay's expectations show that the company suffered a heavy blow. "At the moment, Anthony has rated ebay's shares as" holding "level.

ebay's third-quarter revenue rose 12% per cent to $4.35 billion year-on-year, less than the industry analyst's average forecast of 4.36 billion dollars; ebay's third-quarter net profit, excluding specific costs, was 68 cents a share, slightly above the analyst's average forecast of 67 cents.

Split PayPal

Ebay's shares fell 5% per cent after trading in the US stock market in Wednesday. ebay's share price fell by nearly 1% per cent on the day's regular trading, at $50.24 trillion, and ebay's share price has fallen 8.4% per cent this year.

"ebay's Chris Raiss in the fourth quarter of this year was too low, which led to a fall in its share price," said Kerry Rice, analyst at Needham & Co, an analysis agency. "At the moment, Rice has rated ebay's shares as" holding "level.

In the third quarter of 2014, ebay's net profit was $673 million, down 2.3% from $689 million a year earlier.

This January, activist investor Icahn to ebay, urging ebay to split its business. Last month, ebay unveiled its plan to split its payment business, PayPal. In the latest quarter, ebay's PayPal sector has increased by 29%, more than the industry analyst's average forecast of 27% per cent.

Marketplaces business

The current results underscore that ebay's payment business has grown much faster than the marketplaces business. When ebay unveiled the plan, Donahoe said that a separate PayPal payment business would have more flexibility in the digital payment market to compete better with rivals because consumers are ramping up their use of smartphones and computers to pay for the goods and services they buy. ebay, for its part, says PayPal currently has 157 million accounts, up 14%, and is expected to break 1 billion per cent of the mobile transactions handled this year.

In the latest quarter, marketplace business revenue grew 6.4% to $2.16 billion, and the volume of goods traded in the service grew by 9%.

"ebay will continue to focus on improving competitive power and to enhance the user experience of buyers and sellers and will invest heavily in consumer-management business," Donahoe said in a statement. ”