Netflix Jumps on Price Target Increase, eBay Advances on Spinoff Talk

NEW YORK (TheStreet) -- Netflix (NFLX) jumped after a price target increase from a Needham analyst. eBay (EBAY) advanced after a report surfaced that the e-commerce giant is eyeing a sale or IPO of its enterprise business prior to its spinoff of PayPal. Amazon.com (AMZN) inched ahead as talk surfaced the online retailer is considering a new way to deliver its goods.

Netflix climbed 2% to close at $666.91.

The streaming video company gained following a price target increase to $780 a share from $600 by Needham analyst Laura Martin, according to a report in MarketWatch.

In raising Netflix's price target, Needham cited expectations that the entertainment company would post second-quarter revenue higher than Wall Street's expectations, according to the MarketWatch report. Martin anticipates revenue of $1.04 billion in the U.S., with another $471.8 million coming from international markets. 

Additionally, Martin foresees a day when Netflix may generate a new revenue stream by selling advertising, according to the MarketWatch report. And that would not be such a leap of logic, given other entertainment companies sell advertising.


eBay rose 0.9% to close at $60.52.

The e-commerce giant is reportedly considering the sale or initial public offering of its Enterprise unit, which handles its online storefront, retailer services, software for managing orders and in-store shopping, according to a Bloomberg report. This potential spinoff would be targeted to occur before eBay's split with its PayPal and Marketplaces operation in the second half of the year, the report noted.

Last year, the Enterprise unit generated $1.24 billion in revenue, an increase of 6% over the previous year. In the first quarter, it posted revenue of $288 million, a 7% rise, according to Bloomberg.


Amazon.com advanced 0.9% to finish the day at $427.26.

The online retailing giant climbed higher following a report in the Wall Street Journal the company is toying with the idea of using average citizens to deliver merchandise sold through its site. More specifically, it is reportedly developing a mobile app that John and Jane Doe drivers could use to deliver packages that consumers purchased off Amazon, according the report. The drivers would be paid for their effort.

Internally, Amazon calls this service concept "On My Way" and is evaluating whether traditional retailers with storefronts could house some of the merchandise, according to the report.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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