eBay Inc (NASDAQ:EBAY) is sitting out the broad market pop this morning, down 2.5% to trade at $110.86, after Wells Fargo downgraded the e-commerce platform to "underweight" from "equal weight." The firm warned that eBay's recent acquisition of Depop could pressure fiscal 2027 earnings and require heavier marketing spending to compete with rival resale platforms.
The 80-day moving average appears to be keeping today's losses in check. The $119 region, home to the stock's May 20 record high, rejected the stock's rally attempts numerous times in July. Year to date, the equity is up 27%.
Analyst sentiment is already cautious. Of the 31 analysts covering eBay, 18 carry a "hold" rating and one says "strong sell." Plus, the 12-month consensus price target of $110.94 sits at a small discount to current levels.
Options traders, meanwhile, have shown a slight preference for calls. eBay's 50-day call/put volume ratio of 1.65 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 63% of annual readings.
