Yahoo! (YHOO) Taps New CEO from eBay (EBAY), What's Next for Both?
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Price: $52.58 --0%
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
18 Buy, 21 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Yahoo! (Nasdaq: YHOO) and eBay (Nasdaq: EBAY) are both trading lower Wednesday -- about 2.5 percent and 4.0 percent, respectively -- following the announcement that PayPal president Scott Thompson will takeover as CEO for Yahoo!
The story is big for both Yahoo! and eBay, but let's focus on eBay for a second. Baird issued some comments earlier, here's a few highlights:
On the flip-side, Yahoo! is lower because there was a little bit of M&A built into the share price. On it's conference call following the announcement, Chairman Roy Bostock said taking the company private was "not on the radar."
Whether or not this will change the opinion of some investors is yet to be seen. Carol Bartz had great initiatives, and those never really panned out over her two-years or so at the helm. One particular investor, Third Point's Daniel Loeb, has more than voiced his opinion of a change needed atop Yahoo! With Roy Bostock as Chairman and Jerry Yang on the Board, who knows what will happen.
Should Yahoo! return to prominence, Research In Motion (Nasdaq: RIMM) might want to become a student of that process.
The story is big for both Yahoo! and eBay, but let's focus on eBay for a second. Baird issued some comments earlier, here's a few highlights:
- Though Thompson's departure was a hit for eBay, it gives a nod to the success of PayPal. Baird sees continued growth for the unit moving forward.
- Not long ago, eBay said that PayPal sales were strong in the fourth-quarter, which is consistent with Baird's expectations for healthy e-Commerce growth in the holiday period.
- There might be some weakness from European payments, PayPal's value proposition remains strong.
- eBay spinning-off PayPal seems less likely in the near-term now, but Baird sees it as an event over the longer-term time frame.
- PayPal might have a successor in its ranks with Baird giving a nod to Ranjana Clark (SVP and CMO) and Ed Eger (SVP and GM North America, Core Payments and Emerging Markets).
- Baird has an Outperform rating on eBay, with a price target of $40.
On the flip-side, Yahoo! is lower because there was a little bit of M&A built into the share price. On it's conference call following the announcement, Chairman Roy Bostock said taking the company private was "not on the radar."
Whether or not this will change the opinion of some investors is yet to be seen. Carol Bartz had great initiatives, and those never really panned out over her two-years or so at the helm. One particular investor, Third Point's Daniel Loeb, has more than voiced his opinion of a change needed atop Yahoo! With Roy Bostock as Chairman and Jerry Yang on the Board, who knows what will happen.
Should Yahoo! return to prominence, Research In Motion (Nasdaq: RIMM) might want to become a student of that process.
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Daniel Loeb, Robert W Baird, Third Point LLC, Carol BartzSign up for StreetInsider Free!
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