Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

eBay Inc (EBAY) Has Hit A Wall, Fundamentals Deteriorating

eBay Inc (NASDAQ:EBAY) has hit a wall and its fundamentals are deteriorating, RBC Capital Markets Managing Director Mark Mahaney told Cory Johnson in an interview on Bloomberg West.

eBay, is EBAY a good stock to buy, Mark Mahaney, fundamentals, Amazon, Alibaba,

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, 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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.