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  "documentTitle": "eBay Inc. (EBAY)",
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  "authorName": "Peter A. Feld",
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  "presentationDate": "2020-02-04 00:00:00",
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      "text": "In conclusion, we believe eBay is deeply undervalued, with opportunities to create significant value for shareholders that are directly within the control of management and the Board.",
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      "text": "EV / EBITDA: 20x",
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      "text": "However, as a pure online marketplace, we believe eBay’s core Marketplace business is fundamentally superior... Well-performing e-commerce businesses trade at meaningfully higher multiples, with some higher-growth companies trading above 20x EV / EBITDA.",
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      "text": "Furthermore, we believe that eBay has opportunities to improve its revenue trends. Managed Payments is expected to contribute more than $2 billion in revenue and $500 million in operating profit annually by 2022.",
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      "text": "We also believe eBay should return to its roots in targeting its historical core buyer universe of “self-expressionists and treasure hunters”... and continue de-emphasizing the lower quality GMV that eBay focused on as it began emphasizing its assortment of new, in-season merchandise.",
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      "text": "In conclusion, we believe eBay is deeply undervalued... a separation of Classifieds at peer multiples would imply a pro forma EV / EBITDA multiple for eBay’s remaining business that is lower than the valuation multiples of predominately brick & mortar department stores.",
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      "text": "While eBay made some progress in driving margin expansion in 2019, we believe that significant further opportunity exists and the stated plan of 2% improvement over three years is unacceptable without a meaningful improvement in revenue trends in the core Marketplace business.",
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      "kind": "source-note",
      "text": "Source: Capital IQ, Bloomberg, Company filings, Starboard estimates. Market data as of January 31, 2020.",
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