eBay Inc (NASDAQ:EBAY) has slid another 3% in trading today, down $1.63 to $51.10, a day after the stock lost a nearly identical amount, falling $1.50 to $52.73. The two-day slide, amounting to a 5.7% loss was triggered by Apple Inc. (NASDAQ:AAPL)’s newly unveiled Apple Pay platform yesterday, and the fears over the negative effect on eBay Inc (NASDAQ:EBAY) subsidiary PayPal’s business that will have. Analysts Jon Najarian and Josh Brown debated the stock’s prospects on CNBC today, offering differing views on whether the time is right to buy eBay Inc (NASDAQ:EBAY).
“I love that it broke 52. Did I have any? No. But now I’m buying some today on this dip. The reason is that I don’t think payments are done for eBay, and I think that Apple, kudos to them as I said, that’s one of their homeruns; but there’s not going to be just one winner in that payment space. PayPal’s already out there, it’s doing a great job, it will continue to do that,” Najarian said.
While some features of the Apple Pay platform were expected, some of the revealed features were stronger than expected, including the ability to use debit cards with the platform, and its already strong merchant coverage; 220,000 locations are expected to be available in the U.S upon its launch.
However other much-touted benefits of the platform, like the existing base of 500 million plus credit cards from iTunes users are slightly overblown, given that Apple Pay will only work with the iPhone 6, and not the older devices all those users have (though many millions will surely upgrade).
Still, Brown took direct opposition to Najarian’s view, and feels eBay Inc (NASDAQ:EBAY) has a lot more pain ahead, and that in fact that stock is probably propped up as it is by famed investor Carl Icahn’s substantial position in it.
“I think if this wasn’t Icahn’s sixth biggest position, it would already have a three or a four handle ($30 to $40). Company’s been able to grow their top-line by 15% and yet it’s been trapped in this seven point range going back to November of 2012, almost two years. $50 to $51 has been support, it’s laying down on that level right now like a dead dog,” Brown said.
Brown concluded that he felt the stock would break below that support level, citing the inevitable impact on PayPal’s business Apple Pay would have, and the large percentage of eBay Inc (NASDAQ:EBAY)’s business that PayPal makes up (47%).