eBay Stock Rises On Good Earnings, StubHub Sale News
It was reported earlier this week that the e-commerce platform eBay was one of the “many outlets” considering a potential acquisition of the secondary ticketing site StubHub. Since this news leaked, eBay’s stocks have risen.
According to the Los Angeles Times, eBay’s (NASDAQ: EBAY) shares rose almost 6 percent in extended trading on Wednesday, closing in New York at $39.03. This year, shares are up at about 40 percent. Data from Bloomberg shows that revenue rose 1.8 percent to $2.69 billion in the second quarter, and earnings were 68 cents per share, and this year, eBay raised its full-year profit forecast to a range of $2.70 to $2.75 per share on average.
“The idea that management is open to explore a sale of StubHub caught the market’s attention,” R.J. Hottovy, an equity analyst at Morningstar Inc, told The Times. “They still have things to solve with their online marketplace business.”
On Wednesday, news broke that multiple parties, including eBay, were interested in exploring a sale of StubHub. This news follows the announcement of a strategic portfolio review in March, which happened partly because New York-based investors Elliot Management and Starboard Value LP pushed eBay to consider shedding both StubHub and its classifieds business to focus on its core marketplace back in January.
At this time, it’s unclear which other parties might be interested in the sale of StubHub – which has been a market leader in secondary ticketing.