The comment comes as eBay Inc (NASDAQ:EBAY) is getting more scrutiny as it plans to spin off its PayPal division this year. The company also just reported 4Q2014 results which saw the company’s revenue increase 9% year-over-year to $4.9 billion. Still, experts say sentiment about the company is not too good which is in line with what Mahaney told Johnson.
“There was a heck of a lot of noise out of eBay this quarter and I think the stock is now working off corporate catalyst not fundamental catalyst because the fundamentals are deteriorating,” Mahaney said.
According to Mahaney, eBay Inc (NASDAQ:EBAY) has been upfront about its fundamentals deteriorating because it’s easy to be upfront about what would normally be a sensitive admission such as this when the market is focused on corporate catalyst.
“This was a turnaround story. John Donahoe led a really successful consumer pivot at eBay. EBay was materially underperforming e-commerce growth rates three, four, five, years ago. He came in, turned it around, brought it right back up growing in line roughly with e-commerce the last two years and this year they hit a wall,” Mahaney added.
RBC Capital Markets thinks that eBay Inc (NASDAQ:EBAY) has finally run out of low-hanging fruits to pick and the dual threat of Alibaba Group Holding Ltd (NYSE:BABA) in the international markets and Amazon.com, Inc. (NASDAQ:AMZN) in the domestic U.S. market has put considerable pressure on eBay.
John Donahoe, the company’s current CEO, will leave after a shakeup partly cause by the spinoff of PayPal which activist investor Carl Icahn has been really pushing for.
Jeffrey Tannenbaum’s Fir Tree owned about 5.75 million eBay Inc (NASDAQ:EBAY) shares by the end of the third quarter of 2014.