Shares of eBay Inc (NASDAQ: EBAY) were trading
lower by around 2 percent early Thursday morning in reaction to the company's mixed earnings report.
Expectations Vs. Results
eBay reported an earnings per share of $0.49, which was a penny better than
expected, while revenue of $2.2 billion fell slightly short of the $2.21 billion analysts were expected.
However, the company's second-quarter and full-year earnings per share guidance both fell short of what analysts were already
expecting which is prompting some investors to question what role eBay plays in the e-commerce space.
As one of the first ever large scale e-commerce companies with a history dating back to 1995, it may be clear that the company
has never "gotten to the Amazon.com, Inc. (NASDAQ: AMZN) level," according to TD
Ameritrade's JJ Kinahan.
Kinahan, TD Ameritrade's chief market strategist and managing director, told Benzinga eBay is seeing more competition from
traditional retail companies that expanded their presence online. As such, eBay needs to "figure out how to differentiate
themselves."
"EBAY has pretty much always been an online model, but people are trying to figure out where they fit in," Kinahan added. "It's
an industry influx."
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