Shares of eBay Inc. (EBAY) rallied 2.5% in premarket trading Tuesday, after activist investor Starboard Value L.P. disclosed a letter it wrote to the e-commerce site's board saying the company was "deeply undervalued" and that more value could be created by separating the classifieds business. Starboard said it owns more than 1% of eBay's shares outstanding, but is not among the top 20 largest shareholders, according to FactSet. Starboard said in the letter that the implied valuation of eBay's Marketplace business is "extremely attractive, with opportunities to improve revenue trends, execution and profitability in the core business." Starboard expressed "frustration" that eBay's stock has "drastically underperformed" since it spun off PayPal Inc. (PYPL) in 2015. EBay's stock has lost 1.9% over the past 12 months through Monday, while shares of rival Amazon.com Inc. (AMZN) have soared 22.7% and the S&P 500 has climbed 19.2%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 04, 2020 09:29 ET (14:29 GMT)
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