Quote:
Originally Posted by phaz0rz
(Post 795083)
They've only had their own stock for a year. Hardly enough stock history to call them a dying company, IMO. Their stock was at $34.69 after the EB/PP split in June of last year and it's now at $37.52. Admittedly not much of a jump, but they are technically a "new" company.
Why do you think they are failing?
I know AZ makes considerably more money but I don't think PP is going anywhere.
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Just because you post bigger profit, doesn't mean it's a good thing. Let me give you an example. Say last year I put $100K in the bank, and this year I put $250K in the band, in theory, this year was better, right?
What if I told you last year the $100K was all profit, and this year I only made $50K in profit from work, but sold my house for $200K and don't have a house any more.
Same things with paypal. 5 years ago all paypal profit was from ebay and say it was $100K. Now, their profit from ebay is only $50K. And they are making small, small profit from doing a bunch of other things, but those other things even thought they make them a little money are a failure because they don't reach the amount of profit paypal expects out of them.
And they have tried and tried to do other things, but they just keep failing.
(1) ebay vallet - ebay doesn't have items to sell itself like Amazon. so they thought they'd start selling other peoples things for them, people just send ebay their stuff and ebay lists and sells them and gives them 50% or (Whatever the percentage is). complete fail, very few people use this service.
(2) paypal tried going to stores and accepting paypal in checkout - basically they want to compete with visa/mastercard. again failed, very very few people use paypal in stores
(3) ebay tired to get retail shops to sell on ebay for no fee. basically told stores your buyers are shopping for your items anyways, so sell on ebay so you can reach more potential buyers. again failed. very very few actual stores opened shop on ebay (target is one that did)
(4) they make interests of 21 day holds - they didn't have these holds years ago or made money off it. this is another reason why bigger profits, because they have more money from other sources, but the mail core source (ebay sells) is dying
5-10 years ago paypal had a lot of potential so people loved it. now, they tried doing a bunch of things and failing (yes they are making a little bit of money with these, but their goal is to compete with amazon, visa/mastercard, etc.) and they aren't even in the same ball park.
That's why I said dying. It's better to make $10,000 a year (being a straight A student in college working part time and studying to be a lawyer/doctor etc.) than make $25,000 a year (being a drop out working construction).
