It looks like eBay Inc (NASDAQ:EBAY) might be selling off its possessions and running for the hills to perhaps launch a goat herding business. Cyrus Mewawalla, who is a managing director at CM Research expressed his concerns over eBay’s outlook for the tech industry on CNBC.
Clearly, eBay has no idea where its competitors are heading, or it had just about enough and is waiting to be acquired by a larger concern. Mewawalla explained that all other businesses are creating ecosystems where they shutoff products and services from other such ecosystems. For example, if you use Amazon.com, Inc. (NASDAQ:AMZN)’s search it will shut you off from Google Inc (NASDAQ:GOOGL) or other search related ecosystems, and vice versa.
“[…] The successful companies are building big ecosystems and eBay Inc (NASDAQ:EBAY) just looks like a company without a vision. It doesn’t know how to build an ecosystem, so instead of building one, it is splitting it up,” said Mewawalla.
Paypal’s spinoff has come under a lot of criticism lately. Many investors pointed out that if the e-commerce had to do this eventually, they shouldn’t have fought the activist investor Carl Icahn, months ago and spent millions of shareholder’s hard earned cash.
Now that eBay finally made the decision to split off its payments arm, so that PayPal receives better valuation, than it did when it was under the e-commerce’s umbrella, investors see little value in eBay’s businesses.
“[…] eBay Inc (NASDAQ:EBAY) is splitting PayPal from its e-commerce core market place and it is doing that at a time when it is only a leader in two out of all the tech cycles they are in play,” remarked Mewawalla.
eBay had a great platform to build an ecosystem on and now the company is just ripping it apart. The stock is 3.26% lower today in pre-market trading and stands at $48.6.
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