Question

Based on the gross margin and quarterly revenue growth taken from the financials of Amazon and eBay which company appears to have better margin and better revenue growth?

A. eBay has the higher revenue growth and higher margin.
B. Amazon has the higher revenue growth, but eBay has the higher margin.
C. eBay has the higher revenue growth, but Amazon has the higher margin.
D. Amazon has the higher revenue growth and higher margin.

Answer 1

The correct answer is letter "B": Amazon has the higher revenue growth, but eBay has the higher margin.

Step-by-step explanation:

By August 2018, Amazon reported a five-year gross margin average of 20% while eBay reported a five-year gross margin average of 74%. However, Amazon has outperformed eBay in terms of revenue growth since they reported revenue growth of 25,97% between 2015 and 2018 while eBay only 2,86% during the same period.