Analysts at Wall Street are in agreement that eBay Inc. (NASDAQ:EBAY) has been a laggard in the industry at the back of increased competition and cyber-attacks that have marred its operations for the better part of the year. Running into its second-quarter earnings, many analysts remained bearish on the company’s ability to post impressive earnings.
eBay Inc. (NASDAQ:EBAY) got an uplift in the market according to Dan Nathan on CNBC after the entry of Carl Icahn, who manages Icahn Capital, a move that saw its stock trading at highs of $60 but has since dropped to the $50 mark. “Ebay has been a massive laggard Carl Icahn got the thing going a little bit, it got to multiple year highs of $60 and now is back to $50, ” said Nathan.
Carl Icahn owns 27.80 million shares of eBay Inc. (NASDAQ:EBAY), and initiated a position in the company in the first quarter of 2014.
eBay Inc. (NASDAQ:EBAY) posted a gross revenue of $4.37 billion that was up by 12.6% on a year over basis with GAAP earnings coming in at $676 million. Commerce ecosystem saw an increase of 26% in terms volumes resulting in earnings of $62 billion. PayPal business, on the other hand, accounted for 45% of total revenues coming in at $1.95 billion.
CNBC Contributor, Jon Najarian, remains bullish on the company, maintaining there is a reason Carl Icahn bought the stock which he thinks has to do with what he heard from the company’s board in terms of leadership.
“I think there is a reason that Carl Icahn stayed with the stock. I don’t think there is a lot of Alpha there, but I think that the reason he stayed is he liked what he had from the board and the leadership there at eBay,” said Mr. Najarian
Bob Doll, on the other hand, remains reserved on eBay Inc. (NASDAQ:EBAY) taking into consideration that its earnings and revenues are decelerating; Begging the question whether the company’s value is hidden under Icahn’s investment. The biggest concern will be if Icahn decides to pull out of the stock. The tremendous success that Icahn has had with his investments over the past years continues to be the most attractive feature at the moment for eBay Inc. (NASDAQ:EBAY).