eBay (EBAY) Releases Earnings, Icahn Pushes to Spinoff PayPal

Shares of eBay Inc. (EBAY) were trading up +2.33 or +4.28 percent to $56.65 per share in pre-market trading on Thursday, after the company released its fiscal fourth quarter and full-year earnings results Wednesday afternoon. eBay stock closed up +0.26 or +0.48 percent to $54.41 in Wednesdayâ s regular trading session. In addition to the earnings announcement, activist investor Carl Icahn gave notice to eBay that he had nominated two of his employees to the companyâ s board of directors and proposed spinning off PayPal as a separate company.

Icahn and his associates already own almost one percent of eBay.
San Jose, California based eBay Inc. was founded in 1995 as a consumer to consumer online marketplace. The company has grown exponentially and is now a multi-billion dollar enterprise with operations in 30 countries worldwide. The companyâ s PayPal division is responsible for more than half of the companyâ s revenue. eBay reported revenue for the fourth quarter had increased +13 percent to $4.5 billion, versus a year ago. Net income came to $850 million or $0.65 per diluted share, with non-GAAP net income of $1.1 billion or $0.81 per diluted share. For the full year of 2013, revenue grew by +14 percent with non-GAAP earnings per share increasing +15 percent, while GAAP earnings per share increased +9 percent. The PayPal divisionâ s revenue increased by +19 percent for both the year and the fourth quarter, adding 5.2 million new accounts in the fourth quarter. The PayPal revenue was a large part of the $1.84B in Payments revenue reported. Payment volume increased +25 percent for the year, to $52B due in part to participation of non-eBay merchants and Braintree. The Marketplace accounted for a +12 percent increase in revenue, to $2.23B. eBay Inc. CEO and President John Donahoe stated in a press release, â

Published on Jan 23, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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