eBay fell apx. 3% to close @51.78, today, after a Morgan Stanley report downgraded the online retailed to "equal-weight" from "overweight."
The bank believes eBay management put the company "on the right track to become a key player in omni-channel commerce in the long-run." There are near-term risks, however, and Morgan Stanley cites decelerating trends in omni-channel and offline initiatives as a cause for the downgrade. There is also "limited potential for margin expansion and earnings growth," according to the report.
Morgan Stanley admits there is a chance eBay's revenue will accelerate more than anticipated. For now, however, the bank believes eBay's growth is in line with eCommerce as a whole.
Volume was apx 18 mi v. avg of 12.5.
Disclosure: I am long EBAY.