“Shares of eBay (EBAY) are down $1.32, or 2.3%, at $55.31, following multiple downgrades of the stock this morning after the company yesterday said it would split its business in two, the traditional “Marketplace” auction site, and the PayPal payments platform,” Tiernan Ray reports for Barron’s.
“After yesterday morning’s announcement, scrutiny turned to the matter of how much of a role Apple’s introduction earlier this week of Apple Pay, its electronic payment system that is expected to go into operation in coming weeks, may have prompted the move by eBay,” Ray reports. “Jefferies & Co.’s Brian Pitz cuts his rating to Hold from Buy, while maintaining his $59 price target.”
“Wedbush’s Gil Luria cut his rating to Neutral from Outperform, and cut his price target to $62 from $65, writing that the stock now more ‘fully reflects the value of PayPal within eBay upon the announcement of the spin-off,'” Ray reports. “JMP Securities’s Ronald Josey cut his rating to Market Perform from Market Outperform, writing that the stock is nearing his $58 price target.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]
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and somehow AAPL is down at the same time. People, the fat that was trimmed from eBay is GOING to AAPL!! x10
Gloom, despair, and agony on me
Deep, dark depression, excessive misery
If it weren’t for bad luck, I’d have no luck at all
Gloom, despair, and agony on me
Heeeeee-Haw!
eBay really blew this big time. There was a lot to be said for the experience of selling old crap on eBay and then using the money from your PayPal account for goods and services via Apple Pay.
I think eBay brought this upon themselves by their visionless executives scotching the talks with Apple, stupidly whoring around with Samsung when they could have made much more money legitimately.
The time to spinoff PayPal was months ago, not after the announcement of Apple Pay.
Unlike the rest of us, eBay/PayPal knew this was coming, what were they thinking?
Well the same non-thinking that had them whore with Samscum.
They should sack the Samsung whore merchant at eBay. He was the one who blew this. Revoke his bonus too.
Can’t understand how anyone could be so stupid as effectively play Apple off against SAMSUNG under the delusion because they sell more phones there will be more profit for PayPal. Dont they remember the telcos playing that game losing share then desperately trying to get on the iPhone train? How stupid do you have to be to fail to heed that logic. As a double whammy right or wrong they now look desperate showing palpable fear even before Apples service launches. Doesn’t bode well and be interesting to see how long Ebay’s boss hangs on after it does launch.