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eBay slides on Wells Fargo PT cut, security/search worries

  • "After closely following the Target security breach, we believe that eBay faces some near-term risk of customer churn," writes Wells Fargo, cutting its eBay (EBAY -2.7%) valuation range by $2 to $61-$63.
  • The firm also notes the impact of Google's recent search algorithm changes; ChannelAdvisor estimates eBay's average search rank has dropped 3.88 spots. Its 2014 and 2015 EPS estimates have respectively been cut by $0.08 and $0.09 to $2.87 and $3.30.
  • Cantor, on the other hand, is defending eBay: The firm thinks the Google issues will be addressed in time, and notes eBay only gets a small portion of its traffic from Google search.
  • Meanwhile, a British college student has detected a second eBay security flaw (related to cross-site scripting), and published his findings. eBay says the issue is related to the use of Javascript/Flash on its site by sellers, and that it has a multi-level system in place to deal with malicious code.
Comments (2)
  • Seeker137
    , contributor
    Comments (221) | Send Message
     
    Meanwhile, House lawmakers want answers from eBay:
    From an article by Julian Hattem on THE HILL:
    "A bipartisan duo of House lawmakers has questions for eBay about its recent data breach.
    Reps. Joe Barton (R-Texas) and Bobby Rush (D-Ill.) told eBay chief John Donahoe in a Wednesday letter that they share “some concerns regarding the data security practices of personal information at eBay.”
    The lawmakers, who are both members of the Bipartisan Privacy Caucus, want to know if the company is still gathering details about the full scope of the hack and how users have been affected. They also asked whether or not eBay is looking to overhaul its security standards in light of the hack and if it had noticed a decrease in security breaches in recent years...
    Attorneys general from Florida, Connecticut, Illinois and California announced plans for a joint investigation into the company’s business practices.
    28 May, 05:28 PM Reply Like
  • Brad Castro
    , contributor
    Comments (1308) | Send Message
     
    Ah . . . the U.S. House of Representatives with its perpetual 12% approval rating regardless of which party controls it.

     

    U.S. House representatives excel at moral outrage, looking good on camera, getting re-elected, and, of course, only addressing issues in hindsight.

     

    I have deep respect for the office of the Presidency and the U.S. Senate regardless of which party controls them, but it's difficult to have anything but contempt for an institution where 80% of the members are fiscally and functionally illiterate.

     

    Ouch.
    28 May, 11:13 PM Reply Like
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