EBay stock (NASDAQ:EBAY) stock was falling sharply on Friday as the company’s former subsidiary PayPal (NASDAQ:PYPL) announced its latest quarterly results, which saw some of its metrics slow down.
PayPal said that its merchandise-sales volumes had declined, which suggests that eBay’s business has been sliding as payments done through the online marketplace often require a PayPal account. The payment services provider’s stock did surge as its earnings and revenue of its third quarter of fiscal 2018 were better than what Wall Street was calling for.
In its earnings report, the company said that eBay Marketplaces volume increased 3% on a currency-neutral basis, which marks a decline from the 6% growth in both the second and first quarters. EBay first announced that it was cutting ties with PayPal, which has caused the online marketplace’s stock to lose nearly 25% of its value since that time.
A market research report commissioned by PayPal found that 59% of its users have abandoned a transaction on eBay due to the fact that PayPal wasn’t a checkout option. “We’ve got 254 million customers on our platform right now,” PayPal CEO Dan Schulman said. “Imagine if almost 60% of them would abandon a sale because PayPal Checkout wasn’t available.”
EBAY stock is down about 9.3% on Friday following the news, while PYPL surged 8% on the day.
