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

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. Related Links: 25 Stocks Moving In Thursday's Pre-Market Session Earnings Ramp Up, But International Uncertainty Signals Caution

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."