From Citigroup analyst Mark Mahaney's June 24th note to clients about eBay (ticker: EBAY):
Datapoints from eBay Live Reaffirm Hold Thesis
- eBay is currently hosting its three-day annual community conference, a.k.a. eBay Live, in San Jose, CA. As part of this conference, eBay announced a new initiative (eBay ProStores) to help eBay sellers and others conduct ecommerce off eBay. eBay's CEO Meg Whitman gave a keynote highlighting the firm's success to date. eBay demoed new features on the service. And company management highlighted new directions for PayPal, its payments solution.
- Based on the above and numerous discussions with eBay users and suppliers exhibiting at the conference, we are maintaining our wait-and-see outlook on EBAY. The positives are there -- a very large and enthusiastic user base, and innovations in eBay's search interface that could improve conversion rates. But so are the negatives -- especially, increasing signs that sellers are looking for incremental growth channels away from eBay.
- We reiterate our Hold (2H) rating on EBAY.
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