eBay slumps following CEO Devin Wenig's resignation and a continued review of company assets
- eBay shares slipped as much as 3% on Wednesday after CEO Devin Wenig announced his surprise departure.
- The e-commerce company will appoint chief financial officer Scott Schenkel as interim CEO while it searches for a new chief executive.
- Wenig's announcement marks the second major CEO departure of the day, with Juul CEO Kevin Burns saying he will resign earlier Wednesday.
- The vaping device company faces heightened scrutiny as federal agencies probe whether it unlawfully targeted minors with its advertising methods.
- Watch eBay trade live here.
eBay stock tumbled as much as 3% early Wednesday following news of CEO Devin Wenig's surprise departure from the company.
The company will appoint chief financial officer Scott Schenkel as interim CEO while it searches for a new chief executive.
"Devin has been a tireless advocate for driving improvement in the business, particularly in leading the company forward after the PayPal spinoff," eBay chairman Thomas Tierney said in a press release. "Indeed, eBay is stronger today than it was four years ago."
He added: "Notwithstanding this progress, given a number of considerations, both Devin and the Board believe that a new CEO is best for the Company at this time."
The online marketplace also announced it is continuing a review of its assets, which include ticket sales business StubHub and the Classifieds Group. eBay said it will update investors on its review process later in the fall.
eBay soared as much as 7% in July after beating estimates for its second-quarter earnings, and earned praise from analysts for its announcement to weigh the value of some assets. Selling off unnecessary businesses would help "return the market's focus to the ailing core," Morgan Stanley analyst Brian Nowak said in a July note.
Wenig's stepping down is the second CEO departure of the day, with Juul CEO Kevin Burns saying Wednesday morning he will leave the vaping device maker. Juul also announced it is "suspending all broadcast, print and digital product advertising in the US" as government agencies probe its advertising efforts to see if they unlawfully targeted minors.
eBay traded at $38.92 per share as of 11:20 a.m. ET Wednesday, up about 37% year-to-date.
The company has 13 "buy" ratings, 22 "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $42.14, according to Bloomberg data.
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