This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

[video] Quick Take: Battle Brewing Between eBay and Carl Icahn

NEW YORK (TheStreet) -- Shares of eBay (EBAY) are higher on Thursday but off the highs from Wednesday's after-hours trading session when the company initially reported fourth-quarter earnings.

TheStreet's Ruben Ramirez said eBay disclosed that hedge fund manager Carl Icahn had acquired a 0.82% stake in the company and will nominate two people to the company's board. 

The situation isn't all roses, however. Icahn wants eBay to spin off off its PayPal business in order to unlock shareholder value. In the conference call, it appeared as though eBay's management was not willing to do so. 

Jim Cramer, the co-manager for the Action Alerts PLUS portfolio weighed in: "PayPal standalone is worth a lot. The problem is, there's no way [CEO John Donahoe] is going to go for this." 

He added that shares of eBay will likely rally if Icahn wins this battle but could decline if he fails to convince the company it is a good move.

Must Read: I Am Netflix's 'Bitch' and I Want It to Spank Me

Shares have been trapped between $48 and $58, Ramirez said, with its 52-week high coming from last March. Shares have largely lagged the broader market, as well as its peers. 

Jordan Rohan, an analyst at Stifel Nicolaus, downgraded the stock. He has a $62 price target based on a "sum of the parts" thesis, but saw a less favorable risk-to-reward scenario after shares rallied into the earnings report, and moved higher follow its release.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs