eBay and Amazon Stock Downgraded Yet Again
Friday, December 19, 2008
Brokerage firm lowers stock to "market perform"
A posting on the Schaeffers Research web site reports yet another rough ride for eBay and Amazon stock. Jocelynn Drake writes that the retailers' stocks were downgraded today from "out perform" to "market perform" by Bernstein Research. The brokerage firm stated that there was a greater risk of the companies cutting their outlook and under-performing given the weak economy.
Analyst Jeffrey Lindsay said in a note to clients that rising unemployment, continued home foreclosures that further tighten consumer discretionary spending, coupled with lower-than-expected overseas growth and margin erosion, will hurt both Amazon and eBay in 2009.
Last Wednesday we brought you the views of another Wall Streeter, Stifel Nicolaus, who made a downgrade of eBay stock from "buy" to "hold." That report, also from Schaffers, made this prescient advisory:
"There is still room for additional downgrades to plague the shares" (of eBay).
With each such hit from analysts, a CNN Money report, via Fortune last Friday, opining that eBay shares are a bargain, seems to be coming more true. At a time when Detroit is running out of hard currency, the CNN report notes that eBay has $3.3 billion in cash on hand.
Clearly, Bernstein isn't impressed:
"Analyst Jeffrey Lindsay said in a note to clients that rising unemployment, continued home foreclosures that further tighten consumer discretionary spending, coupled with lower-than-expected overseas growth and margin erosion, will hurt both Amazon and eBay in 2009.
"Online auctioneer eBay faces added problems such as slower-than-expected improvements in active user metrics, a reduced outlook for operating margins, and weakness in the auto market, Lindsay said.
The shares of EBAY dropped more than 1.4% this afternoon following the downgrade, pulling back to support at their rising 10-day moving average. This short-term trendline has guided the security steadily higher since November 24."
So, are you buying, selling or holding eBay shares? Your comments and opinions are appreciated.
A posting on the Schaeffers Research web site reports yet another rough ride for eBay and Amazon stock. Jocelynn Drake writes that the retailers' stocks were downgraded today from "out perform" to "market perform" by Bernstein Research. The brokerage firm stated that there was a greater risk of the companies cutting their outlook and under-performing given the weak economy.
Analyst Jeffrey Lindsay said in a note to clients that rising unemployment, continued home foreclosures that further tighten consumer discretionary spending, coupled with lower-than-expected overseas growth and margin erosion, will hurt both Amazon and eBay in 2009.
Last Wednesday we brought you the views of another Wall Streeter, Stifel Nicolaus, who made a downgrade of eBay stock from "buy" to "hold." That report, also from Schaffers, made this prescient advisory:
"There is still room for additional downgrades to plague the shares" (of eBay).
With each such hit from analysts, a CNN Money report, via Fortune last Friday, opining that eBay shares are a bargain, seems to be coming more true. At a time when Detroit is running out of hard currency, the CNN report notes that eBay has $3.3 billion in cash on hand.
Clearly, Bernstein isn't impressed:
"Analyst Jeffrey Lindsay said in a note to clients that rising unemployment, continued home foreclosures that further tighten consumer discretionary spending, coupled with lower-than-expected overseas growth and margin erosion, will hurt both Amazon and eBay in 2009.
"Online auctioneer eBay faces added problems such as slower-than-expected improvements in active user metrics, a reduced outlook for operating margins, and weakness in the auto market, Lindsay said.
The shares of EBAY dropped more than 1.4% this afternoon following the downgrade, pulling back to support at their rising 10-day moving average. This short-term trendline has guided the security steadily higher since November 24."
So, are you buying, selling or holding eBay shares? Your comments and opinions are appreciated.
posted by Chris and Frank at 6:45 PM
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