EBay posted better-than-expected second-quarter earnings thanks in large part to its PayPal division, helping to slow a decline brought on by both security issues and competition from rival Amazon (Nasdaq:AMZN).
Perhaps the most pressing issue facing eBay's (Nasdaq:EBAY) business is the falling transactions growth recorded in June, down to only 7 percent from double-digit growth previously, according to a report by Reuters. To try to stave off stagnation, the company is expected to introduce more coupons and other incentives, the report added.
The Wall Street Journal noted that, by expanding beyond its core online-payments uses, the PayPal system is on pace to bring in more revenue than eBay's marketplace sales.
The PayPal division's performance may fuel more calls for the company to spin it off into its own separate company. Earlier this year, activist investor Carl Icahn called for just that, leading to a surge in eBay's stock. At the time, asome observers pointed out that eBay as a whole is probably best served by keeping PayPal in the fold, as PayPal is the most valuable business the company has.
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