EBay shares fall as analysts cut price targets

Thu Oct 17, 2013 12:18pm EDT

An Ebay logo is displayed on a monitor in this photo illustration in Encinitas, California, April 16, 2013. REUTERS/Mike Blake

An Ebay logo is displayed on a monitor in this photo illustration in Encinitas, California, April 16, 2013.

Credit: Reuters/Mike Blake

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(Reuters) - EBay Inc shares fell as much as 6 percent on Thursday after the e-commerce company forecast a lackluster holiday quarter, prompting at least nine brokerages to cut share-price targets.

Analysts cut their price targets by between $2 and $6, to as low as $56. EBay shares were trading at $51.54 at midday.

EBay said on Wednesday that the U.S. economic environment and consumer confidence had deteriorated, in part because of the shutdown of the U.S. government.

However, several analysts said they were awaiting results from Google Inc later on Thursday and Amazon.com Inc next week to get a better picture of the e-commerce market.

EBay said it expects a profit of 79-81 cents per share for the holiday quarter, short of the 83 cents per share expected by analysts on average.

Macquarie Equities Research analyst Ben Schachter said he expected eBay to face increasing competition from Google, Wal-Mart Stores Inc and China's Alibaba.

(Reporting by Chandni Doulatramani in Bangalore)

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Comments (3)
Rich_F wrote:
yep here it comes everyone and their mother will be blaming their lackluster performance on the partial government shutdown. america has turned into the land of victims and excuses. no one is accountable. the world war vets would be embarrassed by what this nation has become.

Oct 16, 2013 9:48pm EDT  --  Report as abuse
PetrVl wrote:
Glad to know this. These guys had stopped granting the sellers the free-listing periods. Looks like it is staring affecting their business

Oct 17, 2013 3:29pm EDT  --  Report as abuse
NetSales wrote:
If stock analysts were fully aware of the numbers manipulations and “cooking the books” that reliable sources have indicated that ebay engages in, their heads would be spinning. How far away is an SEC investigation into ebay?

Oct 18, 2013 9:20am EDT  --  Report as abuse
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