EBay's Growing PayPal Division Pays Off

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July 16 (Bloomberg) -- EBay gave a sales outlook for the third quarter that fell short of estimates as the biggest online marketplace struggles to attract customers away from Amazon and other e-commerce rivals. Cory Johnson has more on "Bloomberg West." (Source: Bloomberg)

Editor-at-large cory johnson is here with me in the studio.

Amazon sales grew three times as much.

And ebay had some acquisitions that should have added to sales.

I was thinking of the social numbers and it really represents a lot of the trends we were reporting back there in the winter when it was so cold.

$4.4 billion in revenue, 13% rise, very impressive.

$676 million net income meaning percentages have gone up.

One of the interesting things in this quarterly report is ebay's discussion of cyber security, so expensive and a quarter that sales and marketing costs have been higher in the past.

They did have the hack attack.

That raised cost in the quarter and the suggestion is that will not happen next quarter.

Paypal did well and that's not really a surprise.

It always does well which is why there's a discussion about why they should be together or separate.

John donahoe is running paypal and ebay because he lost his top guy who recently left for facebook.

They reported a 9.8% growth, accelerating growth and you can see what he did.

He really turned the business around.

It was only 18% growth and that was slow in coming down.

He successfully reignited that growth.

19.8% growth.

The growth rate is increasing and when you compare that to the marketplace when you're seeing single-digit growth like 8% in the quarter they reported just today, a substantial difference.

The marketplace growing slowly and the paypal business growing more quickly.

We can look at figures on when paypal may be bigger than the market business.

We will be watching to see when you get someone else to be his second in command.

John donahoe, a lot of work to

This text has been automatically generated. It may not be 100% accurate.


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