
PayPal is a shining star within eBay, and a reason to buy the stock at its cheap price. The online payment service has grown fast since eBay bought it for $1.5 billion in 2002. Now you can use PayPal to buy airline tickets, rent movies at Blockbuster and pay bills. PayPal is used for about 12% of all online payments in the U.S. (Click here for a breakdown of PayPal's fees).
Still, I wonder how well PayPal fits these days within eBay, a company that has been distracted by policy changes, user complaints, changing management and a strategy overhaul. EBay certainly has made PayPal what it is today, but are eBay's struggles limiting PayPal's potential? EBay shares rose less than a percent today to $28.16.
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