eBay (EBAY) Q2 Results 'Decent', Needham & Company Says
Needham & Company analyst Kerry Rice reiterated a Hold on eBay (NASDAQ: EBAY) following 'decent' Q2 results although the company's ability to re-accelerate growth concerns us.
Rice commented, "eBay nearly met 2Q14 revenue expectations despite enduring a cyber-attack and changes to Google's search algorithm. We believe the performance highlights the company's solid core business and management's ability to execute. However, the ability to accelerate future growth remains a concern for us. Some Marketplace customers have not returned following the cyber-attack and those that have appear to be spending less. While management has embarked on marketing efforts to lift spending levels, we believe it could be a challenge. The additional marketing investments are also likely to limit margin expansion. While we believe eBay could post low to mid-teens growth, upside is likely limited."
Shares of eBay closed at $50.70 yesterday.
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