Will eBay Inc (NASDAQ:EBAY) Continue Delivering Value to Investors?
eBay Inc (NASDAQ:EBAY) has been performing extremely well this year and has delivered immense value to its investors. eBay is one of the few companies that were founded in the 1990s and went on to survive the dot com boom and bust of the late 1990s.
Since the founding of eBay, other companies have emerged that compete directly with the online auction site, but the company continue to thrive despite the increasing global competition. Companies such as Amazon.com, Inc. (NASDAQ:AMZN) have increasingly competed with eBay in the e-commerce space, but the company remains profitable to date.
Many analysts expressed uncertainty over eBay’s continued profitability in 2014 when the company announced that it would spin-off PayPal, which was a wholly owned highly profitable subsidiary, into an independent company.
At the time of its divestiture, Paypal Holdings Inc (NASDAQ:PYPL) was eBay’s most profitable subsidiary, which cast doubt as to whether eBay would remain profitable in its absence.
eBay has maintained its auction-style operation model where it facilities transactions between sellers and buyers through bidding. Although other e-commerce sites have emerged since eBay’s founding, the company has maintained its position as a leading online auction-site.
The company has expanded its service offerings to include trading of online event tickets via StubHub, online classified ads via Kijiji and shopping by UPC and ISBN among others. Although these services have been successful, they have not surpassed eBay’s main auction and online shopping website.
eBay has registered impressive results recently, but this is not a guarantee that the positive results will be replicated in future.
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