Jefferies downgraded EBAY to "underperform" and lowered its price target to $52
eBay Inc (NASDAQ:EBAY) stock is 3.4% lower ahead of the open, following a bear note from Jefferies. The analyst in question downgraded shares of the e-commerce platform to "underperform" from "hold" and lowered its price target to $52 from $60, citing decelerating ad revenue and a slowdown in China as potential headwinds, as the company struggles to balance growth and profitability.
In addition, Wedbush initiated coverage on EBAY with a "neutral" rating and a $70 price target. Coming into today, 10 of 28 covering brokerages rated the equity a "buy" or better, which leaves room for even more downgrades that could pressure price action.
An unwinding of positive sentiment in the options pits could also weigh on eBay stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day and 10-day call/put volume ratios of 6.55 and 2.77, respectively, both rank higher than 98% of readings from the past year.
Options look to be an attractive route to go when weighing in on the stock. EBAY'S Schaeffer's Volatility Index (SVI) of 27% ranks in the relatively low 26th percentile of the last 12 months. What's more, the security's Schaeffer's Volatility Scorecard (SVS) sits at a low 18 out of 100, making it a prime selling candidate.
On the charts, the $65-$66 level has kept a lid on the stock in recent sessions, thwarting countless rally attempts since September. Further back, eBay stock has managed to move steadily higher over the course of 2024, adding nearly 50% in this time frame and trading at two-year highs as recently as October.