Boston, MA 06/10/2014 (wallstreetpr) – Sources at eBay Inc (NASDAQ:EBAY) announced that David Marcus, the President of PayPal has plans to call it a day on June 27, 2014. This evolved as the PayPal President had been lured by a more intriguing and challenging task at hand – working on Facebook Inc (NASDAQ:FB)’s Messaging Services and Products.
Under David Marcus’ exquisite leadership, PayPal had revived, built great momentum and potential for growth and is currently right on track and hopes to meet the company’s annual guidance in FY 2014-15. Marcus had been in business as the PayPal President for a little over 2 years, and took many important strategic decisions in the realm of developing new products and making acquisitions.
Is Marcus’ Exit EBAY’s Loss?
In 2013, the company processed transactions worth $180 billion, of which $27 billion evolved as mobile payments. In FY 2013, PayPal’s revenues accounted for 41% of eBay Inc (NASDAQ:EBAY)’s revenues. Though the PayPal authorities are banking on notching up a resounding growth, despite Marcus’ exit, the investors are prying on the company’s performances in the subsequent quarters!
Setbacks nailed profits and reduced incumbent traffic at the EBAY’s online marketplace in May 2014. The company faced a double whammy as it was in jitters following a palpable cyber attack, as Google Inc (NASDAQ:GOOGL)’s obfuscating search demotion process followed suit.
Cyber Breach Impacts EBAY’s Sales
Sales declined sharply once the eBay Inc (NASDAQ:EBAY) portal was attacked, and the company announced on May 21, that 145 million digitally encrypted passwords and relevant non-financial data were procured by cyber attackers during February-March 2014. The fear of cyber attacks urged e-buyers to switch from EBAY to other marketplaces, resulting in a 5.4% drop in sales, between May 22 and 31, 2014.
GOOGL Hits EBAY Hard
During the same week of the announcement, EBAY was hit by GOOGL’s search algorithm update – Panda 4.0! This update was ensured to reward myriad websites with high quality contents and associativity possess better rankings during the organic search results. Consequently, EBAY witnessed a sharp drop in web traffic by 33.0% after the Panda 4.0 update. Speculations are rife that not-up-to-date SEO strategies hushed eBay Inc (NASDAQ:EBAY)’s incumbent traffic across 40-80% of its sellers’ pages, following the GOOGL’s Panda 4.0 update.
