eBay's Double-Digit Growth

eBay (NASDAQ: 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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8/28/2015 4:00 PM
EBAY $27.25 Up +0.15 +0.55%
eBay CAPS Rating: ****