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

|About: eBay Inc. (EBAY)|By:, SA News Editor

"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.