EBay Slumps Slightly Following Mixed Earnings; Analyst Notes Need To Differentiate

Shares of eBay Inc 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. 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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