Tomahawk, WI 09/15/2014 (Basicsmedia) – eBay Inc. (NASDAQ:EBAY) stock was surging on Friday after news surfaced about a possible stake acquisition by search engine giant Google Inc. (NASDAQ:GOOG). CNBC’s Dan Nathan argues that a number of companies may be interested in purchasing stakes in eBay should there be an opening.
eBay Inc. (NASDAQ:EBAY) closed the week on a high of $52.19 after going up by 2.98% on the stake’s sale news. eBay has already rubbished the rumors claiming it has not heard from Google about any stake acquisitions. eBay stock was down in the market before the news erupted on Twitter Inc. (NYSE:TWTR). Google is believed to be eyeing eBay especially for its PayPal unit which is considered lucrative at the back of Apple Inc. (NASDAQ:AAPL) announcing its plans for mobile payment platforms.
“[…] when you think about it, Carl Icahn is the seventh largest shareholder. He had a proxy fight a pretty nasty fight brewing with the company. He actually made out. He now has more seats on there. He has been very quiet about this; this guy has had a really hot end. Just think about Family Dollar Stores, Inc. (NYSE:FDO), he gets involved in that, they get sold they are in bidding wars right now,” said Mr. Nathan
After the company declined that it was talking to Google its stock sunk in the market and went flat, of which Nathan believes is a bullish signal on the stock. EBay has been an underperformer against the overall NASDAQ performance making its stock relatively cheap and a possible take-out stock, according to Nathan.
“[…] This is a company people that is actually growing at double digits. They have double-digit sales growth; it is a cheap stock. It is a very well-run company here and obviously if they have some shareholders that want to see them unlock some shareholder value,” said Mr. Nathan.
Nathan also argues that if Google is truly interested in acquiring stakes in eBay Inc. (NASDAQ:EBAY) then Microsoft Corporation (NASDAQ:MSFT) may also up its game on the same as it seeks to compete against Apple’s, Apple Pay, mobile money transfer platform. Facebook Inc. (NASDAQ:FB) and Yahoo! Inc. (NASDAQ:YHOO) may also try to acquire some stakes according to the analyst.