Sep. 30, 2014, 7:11 AM
- The deal to create two standalone publicly traded businesses is expected to be completed as a tax-free spinoff in H2 of 2015.
- Devin Wenig, currently president of eBay (NASDAQ:EBAY) Marketplaces, will become CEO of the new eBay company following the separation. AmEx's president of the Enterprise Growth Group Dan Schulman comes over immediately as president of PayPal and will be the CEO of PayPal after the spinoff.
- Neither current CEO John Donahoe nor current CFO Bob Swan will have executive management roles in the two new companies.
- A conference call is set for 11 ET.
- Source: Press Release
- The stock is currently halted from trade.
Sep. 23, 2014, 2:19 PM
- PayPal (EBAY +0.6%) has struck deals with major Bitcoin (COIN, OTCQB:BTCS) payment processors Coinbase, BitPay, and GoCoin to enable Bitcoin payments for digital content through the PayPal Payments Hub. The Payments Hub allows digital content providers to quickly handle payments via PayPal, credit cards, and other payment types.
- Notably, the deal doesn't cover PayPal's own widely-used digital wallet, and also doesn't involve PayPal processing Bitcoin transactions itself. In addition, pre-sales (i.e. payment for a product/service to be delivered later) won't be supported.
- PayPal has taken a relatively cautious approach to Bitcoin, even as a number of major firms (inc. Dell, Expedia, Dish Network, and Newegg) have embraced the virtual currency. However, the company's independently-run Braintree unit threw its weight behind Bitcoin earlier this month.
- Bitcoin prices, under pressure in recent weeks, have rallied thanks to PayPal's move. Coinbase currently shows a bid-ask spread of $427.29-$427.61.
Sep. 15, 2014, 9:39 AM
- Piper Jaffray's Gene Munster views last Friday's reports that Google (GOOG -0.7%) is in talks to buy a stake in eBay (EBAY -0.4%) as largely unsubstantiated and thinks a deal between the two is unlikely despite Google's penchant for making big bets.
- But the analyst goes on to say that if Google were to buy a stake in eBay, he believes it would specifically target PayPal, particularly given Apple’s unique Apple Pay feature on the iPhone 6.
- Munster maintains a Neutral rating and $55 price target on eBay shares.
Sep. 12, 2014, 11:55 AM
Sep. 12, 2014, 11:26 AM
Sep. 12, 2014, 2:14 AM
- eBay (NASDAQ:EBAY) plans to launch an advertising network for its mobile app in the fourth quarter, shifting from the "retail-only" space into the fast-growing mobile ad market.
- Despite the new danger of drawing people away from the website, eBay's head of advertising Stephen Howard-Sarin downplayed the risk, citing how many users repeatedly return to the site.
- eBay will also have an easy time tailoring the ads, as users have a universal login across all their devices.
Sep. 11, 2014, 12:10 PM
- Needing to focus on a family matter, eBay (EBAY -0.2%) SVP and Chief Technology Officer Mark Carges has resigned.
- "From overhauling search, and steering upgrades to the eBay Enterprise technology portfolio, to accelerating innovation through a number of strategic acquisitions, Mark has been instrumental to eBay’s success," says the company in a blog post. "Among his greatest contributions is his effort to develop eBay technologists, expand their career and increase eBay’s technology presence in India and China."
- CEO John Donahoe tweets: "Heartfelt thanks for an incredible 5 years of innovation. You have been instrumental to our success. We will miss you."
Sep. 10, 2014, 9:23 AM
- Same Store Sales for Amazon (NASDAQ:AMZN) rose 45.1% in August, up from 40.4% in July, and continuing a trend of increasing the Y/Y growth rate every month in 2014.
- Continuing to lose share, eBay (NASDAQ:EBAY) SSS rose just 5.9% in August, down from 9.7% in July, and the weakest result for the company since February 2011. Looking further into the detail, eBay auctions fell 11% Y/Y, eBay fixed price rose 6.8% (down from 12.8% in July), and eBay Motors rose 8.4%.
- Full report
- AMZN +1.7%, EBAY -2.7% premarket
- Previously: eBay downgraded over Apple Pay
Sep. 10, 2014, 7:27 AM
- "While unlikely to impact eBay's (NASDAQ:EBAY) business over the next 6-12 months, we believe the unknown competitive threat of Apple Pay will further weigh on eBay's multiple over the next 3-6 months as Apple Pay has the potential to disrupt the competitive mobile payments market," says Piper's Gene Munster, pulling his Overweight rating and cutting the price target to $55 from $63.
- "We believe a lower multiple on eBAY is deserved given the change to the competitive market, even though over the next 6-12 months fundamentals on the core PayPal business remain intact."
- Shares -0.9% premarket after yesterday's 2.8% decline.
Sep. 9, 2014, 1:59 PM
- Apple (AAPL +4.8%) plans to launch a mobile payment solution called Pay in a bid to replace physical wallets, credit cards, and other mobile wallet services which have "failed" - according to CEO Tim Cook.
- The company will use its Passbook app and a customer's iTunes account details to store payment information, while NFC and touch ID technology will be utilized. The major credit card companies are already on board and Apple is lining up powerhouse banks. Shares of eBay (EBAY -1.9%) have dipped off the development.
- Apple will launch iOS 8 on September 17 in front of the September 19 release date for its new iPhone 6 in the U.S.
- More on the iPhone 6: Wi-Fi calling will be available for both new products. 14 hours of 3G talk time for the 6 and 24 hours for the Plus are promised. The phones feature a new sensor which serves as a barometer to measure elevation changes (Nike (NKE +0.1%) is on board). The 8MP iSight camera appears to be a serious jump in quality (video at 1080p and a slo-mo option at 240 fps). FaceTime gets a serious upgrade through the new front-facing camera. Pricing tops out at $399 for the 128GB iPhone 6 with a two-year contract.
- Apple event webcast
Sep. 9, 2014, 2:25 AM
- eBay (NASDAQ:EBAY) will start processing payments in bitcoin (COIN, OTCQB:BTCS) at its Braintree payments subsidiary, part of its PayPal unit.
- Braintree will roll out the capability in the coming months, and will work with bitcoin exchange Coinbase to enable payments in the virtual currency.
- The move could potentially allow PayPal’s 152M accounts to use the currency as payment, prompting wider use and acceptance of bitcoin.
Sep. 2, 2014, 2:26 PM
- Following reports Apple (AAPL +0.8%) is working on a mobile payments platform leveraging NFC radios, Touch ID fingerprint sensors, and 800M+ iTunes accounts, Stifel thinks Apple may have finally "cracked the code" for getting consumers to make offline payments with their phones rather than credit/debit cards.
- Stifel: "With NFC and iBeacon to follow, we expect Apple’s payments product to be more focused on physical, brick-and-mortar retail than online ... We think Apple correctly sees a much bigger opportunity offline where consumer adoption is still negligible."
- RBC sees a chance to create a loyalty points system for Apple products/services. Forbes' Mark Rogowsky thinks tech advances, Apple's scale, and the pending U.S. adoption of chip-and-PIN readers (will increase NFC reader support and make card payments slightly less convenient) amount to "a perfect storm" that can allow Apple's platform to succeed in spite of the failures of existing NFC solutions (Isis, Google Wallet, etc.).
- PayPal owner eBay (EBAY -0.9%) is off moderately. PayPal has made a number of moves to expand into offline payments, but uptake has been limited. It handled $27B in mobile transactions last year, largely for online payments. Unlike Apple's solution (from all indications), PayPal's mobile payments offerings support both Android and iOS.
- Reported Apple NFC chip supplier NXP (NXPI +0.7%) is adding to its recent gains.
Aug. 21, 2014, 12:53 PM
- eBay (EBAY +3.6%) tells Reuters its stance on spinning off PayPal hasn't changed. However, the company adds its board "will continue to assess all alternatives" for creating long-term value.
- Shares have pared their morning gains on the remarks, but remain up strongly.
- Earlier: eBay reportedly thinking of spinning off PayPal
Aug. 21, 2014, 11:43 AM
- Hedge funds are having a difficult time of it again this year, up 1% vs. a 7.5% gain for the S&P 500, according to Goldman Sachs, which crunched the numbers on 775 funds with $1.9T in AUM.
- Nevertheless, Goldman's list of 50 stocks which "matter most" to hedge funds has outperformed the S&P 500 on a quarterly basis 66% of the time since 2001. The stocks this quarter (posted in order of the number of funds in which a name is a top-10 holding):
- ACT, AAPL, FB, AGN, AAL, GM, TWC, AIG, MSFT, HTZ, CHTR, MU, WMB, LNG, C, DAL, HCA, APC, CBS, ALLY, GOOGL, APD, NRF, BAC, EBAY, LBTYK, PCLN, VRX, BIDU, DTV, DISH, DG, EQIX, MA, WAG, ARCP, GILD, LINTA, MON, FOXA, VC, AMZN, BRK.A, BRK.B, SUNE, CMCSA, JPM, MIC, CCI, HES, LAMR.
- A special call-out to Northstar Realty (NYSE:NRF), Visteon (NYSE:VC), SunEdison (NYSE:SUNE), Macquarie Infrastructure (NYSE:MIC), and Lamar Advertising (NASDAQ:LAMR) for making the list of hedge fund hotels despite their relatively tiny market caps.
Aug. 21, 2014, 10:23 AM
- Though it has rejected Carl Icahn's call for a PayPal spinoff, eBay (EBAY +3%) has been "telling potential recruits for the position of PayPal CEO that it’s considering spinning off the payments business as soon as next year," The Information reports.
- eBay and Icahn engaged in a war of words earlier this year, with the former insisting it needed to hold onto PayPal due to various synergies with Marketplaces, and the latter arguing eBay's board was compromised by conflicts of interest.
- eBay has spiked in response to the report. PayPal, which saw respected division chief David Marcus leave in June for Facebook, almost certainly accounts for over half the company's $68B market cap.
Aug. 19, 2014, 2:09 PM
- With the help of its Braintree unit's Venmo Touch service, PayPal (EBAY +1.1%) has launched One Touch, a mobile payments platform that lets users quickly pay across multiple apps after logging in once. Braintree's recently-launched v.zero SDK has been updated to include One Touch support.
- Though Venmo Touch has seen a measure of success, PayPal's huge reach - it had 152M active accounts at the end of Q2, and is supported by scores of high-profile online merchants - should allow for much wider uptake.
- PayPal has made a long list of moves (I, II) to grow both its mobile e-commerce and offline payments share. The payments giant handled $27B worth of mobile transactions in 2013.
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