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.