1 Green Flag for eBay, and 1 Red Flag
Investors have mixed feelings about eBay (NASDAQ: EBAY). The e-commerce website and platform thrived at the pandemic's onset when hundreds of millions wanted to avoid shopping in person. As a result, sales and customer signups surged. The economic reopening has had the opposite effect. After being cooped up at home for over a year, people want to get out of the house.
However, it's not all bad news for eBay from now on. The company is implementing a strategy to boost revenue, even as customer spending is falling. Let's take a closer look at eBay's green and red flags below.
Notably, eBay does not own any inventory for sale on its platform. Instead, it encourages buyers and sellers to meet on its website to make transactions. eBay makes money by taking a percentage of each sale (its "take rate").
Source Fool.com
