eBay's Double-Digit Growth

eBay's Double-Digit Growth

eBay shares rose slightly today as the company released some very strong earnings numbers. The company's PayPal segment was able to grow its revenue by nearly 20%, and its marketplace segment, which many have thought recently would suffer greatly trying to compete with Amazon was able to post double-digit growth as well.

However, the bigger story many investors are watching here comes from well-known activist investor Carl Icahn, who owns a 0.82% stake in eBay, and has come out pushing hard for the company to split off its PayPal business, seen by many as growing at a faster pace than the core marketplace business. eBay's response so far has been a polite "No thanks."

In this video, Motley Fool financial analyst David Hanson tells investors why he thinks this is a deal that, though it won't happen immediately, could happen further down the road. He also sees the company's multiple of 26 times earnings as fair for a company still growing at this pace, and notes several reasons to be interested in this stock today.

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The article eBay's Double-Digit Growth originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned, and neither does Fool contributor Mark Reeth. The Motley Fool recommends and owns shares of eBay. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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