Despite a huge year for the Nasdaq Composite, up 33%, eBay (Nasdaq: EBAY) – one of the darlings of the Internet boom of the late ‘90s – has been flat. It saw spikes in the $52 to $57 area but looks to be ending the year where it started: around $52 a share.
But recent developments [...]
eBay's (NASDAQ: EBAY) most prominent business is ebay.com, an internet auction site that connects individual buyers and sellers worldwide. Its massive popularity places it as one of the Internet's leading e-commerce sites, and millions of items are sold each day on eBay.com. It has three primary businesses: auctions, payments (PayPal) and communications (Skype).
In addition to PayPal and Skype - two businesses that eBay acquired through mergers - eBay has grown beyond its three core businesses by purchasing various companies. These acquisitions have served to expand eBay's business into different regions of the world as well as extend its online auction-based business model. As a result, eBay faces the challenge of integrating these properties with its existing businesses, many of which compete with one another.