Future of standalone PayPal bright: EBay investor

Through the prism of The Good, the Bad and the Ugly on Wall Street, here are three top items for investors on Tuesday.

The Good

Wall Street cheers eBay-PayPal split
Wall Street cheers eBay-PayPal split

Shares of eBay opened sharply higher Tuesday, after the e-commerce giant announced before the bell that it plans to split its PayPal and online shopping businesses into two separate publicly-traded companies next year. One big eBay investor, Bill Smead, told CNBC's "Squawk Box" that he has mixed feelings on the move. He also defended the prospects for PayPal's future.

Read MoreEBay, PayPal to split into separate public companies

The Bad

Did ego cost eBay CEO John Donahoe his job? While he's going to stay on to spearhead the split and then join the boards, Donahoe found himself on the losing side of a fight with activist investor Carl Icahn who's been pushing for the break-up all year.

The Ugly (maybe)

EBay might have a tough road alone without the growth engine of PayPal. But one analyst told CNBC it might not have to. Piper Jaffray senior research analyst Gene Munster speculated on how Alibaba might play a role. "The one element that this really opens up is the concept that Alibaba could purchase the [eBay] marketplace."

Read MoreDoes e-commerce giant loom over eBay-PayPal split?