Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL)’s Ominous Roar Is Well Heard By eBay Inc (EBAY)

Apple Inc. (NASDAQ:AAPL)‘s recent launch of its mobile payment platform, Apple Pay, rang a few alarm bells for eBay Inc (NASDAQ:EBAY) as its stock took a bath since investors feared more competition for its PayPal. However, eBay Inc (NASDAQ:EBAY) has responded well to Apple Inc. (NASDAQ:AAPL)’s roar and alsoin a timely fashion, as reported by Susannah Lee of TheStreet.

Apple AAPL Google GOOGL Smartphone Girl

Lee relayed the intentions of the online auction platform to spin off its payments platform.

“[…] eBay Inc (NASDAQ:EBAY) is sharply higher in early trading after saying it will split PayPal business to become two publicly listed companies. The transaction is expected to be completed in the second half of 2015 […],” said Lee.

Apple Inc. (NASDAQ:AAPL)’s Apple Pay wasn’t the only threat that eBay Inc (NASDAQ:EBAY)’s PayPal faced. According to the article on TheStreet by an independent contributor. Another competitor in the form of Lending Club, which is a peer-to-peer lending company has also recently decided to go public.

As eBay Inc (NASDAQ:EBAY) saw the scene of online payments go through tumultuous times in terms of several competitors jumping on the boat, it made the right decision to regroup, think the situation through and decide on a spinoff. This gives both businesses, the auction and the payment, a fighting chance. There is no need for one to take the other down with it, if it comes to that.

There weren’t a lot of similarities between the two arms of eBay Inc (NASDAQ:EBAY) to begin with and the latest move gives both of them a chance to focus on their future separately.

PayPal’s biggest fear remains Apple Inc. (NASDAQ:AAPL)’s payment platform, owing to the reputation that the tech industry has in terms of launching new products. Apple Inc. (NASDAQ:AAPL) can reach out to consumers in a way, so as to make its products an essential part of their lives. A trait shared by only a handful of other tech companies.

Disclosure: none

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details