SAN FRANCISCO (TheStreet) – eBay (EBAY) - Get Report investors heavily bid up the stock, after the company announced it would spin off its payment processing arm PayPal. In addition, the online auction giant also announced its embattled CEO John Donahoe would step down once the spin off is completed, which is expected to occur in the second half of next year.
Shares of eBay rose 7.54% to $56.63 at the close, while the broader markets were in the red across the board.
In the backdrop of this unfolding drama had been activist shareholder Carl Icahn, who had been pushing for the PayPal spin off earlier this year. In April, the parties reached a settlement, in which Icahn received a say in eBay's selection of a new director. The company appointed former AT&T CEO turned investor Dave Doorman.
After the split, eBay will be headed up by Devin Wenig, currently its eBay Marketplaces president, while PayPal will have former American Express (AXP) - Get Report Enterprise Growth Group President Dan Schulman as its CEO.
Shares of Move (MOVE) were on the go, charging upwards of 37.08% to close at $20.96.
The online real estate listing platform company, which operates such sites as Realtor.com, struck a deal with News Corp. (NWS) - Get Report . Under the agreement, News Corp. will pay $950 million in cash for the company, which counts Zillow (Z) - Get Report and others as its competitors.
News Corp is snapping up Move to bolster its REA Group investment. REA, which counts News Corp. as a majority stakeholder, offers real estate listings in Australia. It will now inherit a 20% stake in Move, as well as have operating control of the online real estate platform.
Baird's thinking goes along the lines that Atlas could help Facebook increase its display advertising revenues and marketshare. Atlas focuses on helping its customers track the effectiveness of their marketing that appears on the Internet.
Microsoft (MSFT) - Get Report investors may have been hoping for a little more than they got, when the company debuted its Windows 10 operating system. Shares of Microsoft inched down 0.17% to end the day at $46.36.
Microsoft says it opted to skip the name Windows 9 and go straight to Windows 10, as a gesture its latest operating system is markedly different than its previous versions, according to a CBC Newsreport. However, customers may ultimately disagree.
At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
You can view the full analysis from the report here: EBAY Ratings Report