Shares of online retailer eBay are trading up Thursday despite the company reporting mixed-bag Q2 results and analysts lowering their price targets.
The company, piggybacking on the health of its PayPal payments division, narrowly beat estimates with earnings per share of 69 cents. Second-quarter revenue was in-line with expectations at $4.4 billion. As a result, shares were up by more than 1.5 percent at $51.50 by midday Thursday.
Traders and analysts aren’t necessarily giving eBay a pass on the quarter, which even CEO John Donahoe admitted was a “challenging” one.
“In a challenging second quarter, our commerce and payments platforms delivered strong enabled commerce volume growth of 26 percent,” eBay President and CEO John Donahoe said in a prepared statement. “PayPal generated another strong quarter while eBay’s growth was hampered by its global password reset for all users.”
Thursday, the stock’s 12-month price target was clipped a few dollars by a number of firms including Jefferies, Benchmark, and RBC Capital. Sentiment among traders on financial social network StockTwits is down 27 percent, with several traders indicating they were either getting out of the stock or scalping it.
PayPal, which brought in $1.9 billion in revenue and grew net payment volume by 29 percent, proved to be eBay’s Q2 star. Even still, eBay’s growing payments division may not be enough to assuage investor concerns around the long-term health of the company.