Morgan Stanley Downgraded EBay, Today
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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.