EBay Incshares rose as much as 10 percent as several brokerages raised their price targets on the stock after growth at the company’s online marketplaces and PayPal payment service allowed it to report stronger-than-expected quarterly earnings.
The company’s shares rose to $44.44, their highest in more than seven years. Rival Amazon.com Inc’sshares rose about 5 percent.
“PayPal’s large and growing addressable market opportunity, and the overall company’s continued progress in mobile makes eBay an increasingly compelling investment proposition,” Evercore Partners, which raised its target price on the stock to $44 from $39, wrote in a note to clients.
Stifel Nicolaus analysts led by Jordan Rohan said eBay appeared to be enjoying a smoother transition to mobile than most internet companies, and the brokerage raised its price target on the stock by $7 to $50.
Chief Executive John Donahoe said on Wednesday that eBay’s and PayPal’s mobile businesses will each handle transactions worth $10 billion this year, more than double a year earlier.
“Mobile is a tailwind for eBay, as the medium is allowing for incremental volume with no pricing or margin degradation (which plagues online ads),” analysts at Barclays Capital led by Anthony DiClemente wrote in a client note. Barclays raised its price target on the stock to $44 from $41.
Ebay’s shares were up 9 percent at $44.14 on Thursday afternoon on the Nasdaq. Amazon shares were up at $226.49.