Icahn takes eBay stake, calls for PayPal spinoff; $5B buyback authorized

In tandem with its Q4 results, EBAY discloses Carl Icahn has taken an 0.82% stake in the company, has submitted two board nominations, and is calling for PayPal to be spun off into a separate business.

Perhaps not coincidentally, eBay has also authorized a new $5B buyback, which raises its total authorization to $5.6B (good for repurchasing 7% of outstanding shares).

Q1 guidance is for revenue of $4.15B-$4.25B and EPS of $0.65-$0.67, below a consensus of $4.3B and $0.72. 2014 guidance is for revenue of $18B-$18.5B and EPS of $2.95-$3.00, largely below a consensus of $18.5B and $3.12.

EBAY +8.6% AH

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Comments (4)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    In this frothy market, Paypal spinoff probably a good idea.
    22 Jan 2014, 04:35 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
    sold my ebay after the pop. took forever to see this pop.


    Icahn touched aapl, and that hasn't done crap for me.
    22 Jan 2014, 04:46 PM Reply Like
  • sl100
    , contributor
    Comments (112) | Send Message
    Ichan knows how fool people and use the media to promote his position he has less than 1% and talks as if he owns the business. He is not be blamed for all of it is the Media like CNBC who should be thrashing this guy instead they treat him like god at cost of all they viewers.


    EBAY missed revs and do not see much growth in this company to justify buying the stock. Profits missed if you exclude one time charges.


    In general stocks are over valued and investors need to move the 401K to cash/money mkt funds at this stage and redirect the monthly contributions to cash/stable value money mkt funds. The market is too frothy and way over valued. Yes the mkt can go up for another 5% but al the large companies missed revs(and profits in most cases) at the same time they have piled up a lot of debt. Corp debt increased100% in the last 5years for US companies.
    22 Jan 2014, 06:18 PM Reply Like
  • bdarken
    , contributor
    Comments (645) | Send Message
    COP at 68.00 is frothy?
    GE at 26?
    PFE at 31?
    PG at 79?
    ED at 55?


    I will grant you that there's a big basket of stocks w/ PE's of 30+, but there are also
    solid companies that serve people around the globe that are reasonably priced.


    Perhaps they spend more time on their customers than they do PR.


    That said, going to cash at every opportunity!
    23 Jan 2014, 07:20 AM Reply Like
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