Ahead of the Bell: EBay edges higher on 4Q report

NEW YORK (AP) -- Shares of eBay Inc. rose before Thursday's opening bell after the company reported increases in profit and revenue for its most recent quarter.

EBay also said late Wednesday that activist investor Carl Icahn is seeking a non-binding shareholder resolution to spin off PayPal. EBay said the billionaire investor has nominated two of his employees to the company's board and now owns a 0.82 percent stake in the San Jose, Calif.-based company.

But eBay said it has looked into a split and does not believe it would be the best move for shareholders.

The company's adjusted profit for the quarter that ended in December totaled 81 cents per share and beat the average estimate of analysts polled by FactSet by a penny, though its revenue of $4.53 billion fell slightly short of average predictions of $4.55 billion.

EBay also issued profit and revenue guidance for the current quarter that was slightly lower than expected.

Wall Street analysts said they remain optimistic about eBay's profit potential, regardless of how Icahn's proposal plays out.

Chad Bartley of Pacific Crest Securities backed his "Outperform" rating for the stock, saying that investors should consider picking up shares when they're priced around $50. But he advised them to not chase them based on the Icahn news. He has a $60 price target on the stock.

Barley noted that eBay's mobile operations were the company's main driver during the fourth quarter, which he says bodes well for 2014.

Citi's Mark May also backed his "Buy" rating and boosted his price target by $5 to $68. He said that while the company's expectations for the next couple years may be tempered, they're generally in line with his expectations.

In premarket trading, eBay shares rose 99 cents to $55.40.