eBay Inc. is the American multinational corporation that won the jackpot with a new digital format for the consumer to consumer and business to consumer services. The multi-billion organization has just revealed its 2016 numbers, and they are bigger than the expected outcome. It seems that during the winter of 2016 the company succeeded a record holiday revenue. The fortunate turn of events is due to a recent revamp of the online marketplace which attracted more digital transactions than before.
The eBay image needed a redesign back in 2016 in order to become an appealing source of online shopping for millennials. While during the beginning of the company in 1995 eBay was the king of the digital retail thanks to its auction format, now the trends have shifted towards more conventional shopping ways. This happened because the auction format no longer holds the suspense element of the past days. In today’s world, everybody can find out the real price of an item with just some clicks on the search engines. Thus, eBay turned away from this fad and created a market with 86% of items with fixed prices and 80% of products being brand new.
In light of eBay revenue report, the shares of the company went up by 7.5% on Wednesday and reached a value of $32.49. In the fourth quarter, the company experienced a growth of 2.2% which led to a total revenue of $22.34 billion. The net income of the online retailer grew by $5.94 billion which means $5.30 per share. A massive part of its financial boost came from a recent income tax benefit. The new rule gave the company a non-cash $4.6 billion that was accumulated mostly from international parties which led to record holiday revenue.
The President and CEO of eBay, Devin Wenig, stated that the fourth quarter of 2016 was pushed to extremes thanks to eBay business department. Moreover, his company was among the most visited commerce destinations in the world, and it was the second e-commerce website in the U.S. with the best traffic. For 2017, the officials are expecting a steady increase in revenue as they will continue to strengthen the same 2016 business strategy. Thus, this year the organization expects a total revenue of up to $9.5 billion which will mean a growth of 8% for FX-Neutral.
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