Wells Fargo Weighs In On eBay's May Growth Slowdown
Wells Fargo shared its thoughts on eBay’s (NASDAQ: EBAY) slowed comparable sales for May, as released by ChannelAdvisors. ChannelAdvisors also gave metrics on same-store sales for Amazon (NASDAQ: AMZN) and Google (NASDAQ: GOOG) shopping last Friday.
ChannelAdvisors reports an 11.5 percent increase in comparable sales in May, versus 14 percent in April and 17.8 percent in March.
Wells Fargo had anticipated slowed sales at the end of May for eBay following a change in the Google algorithm (lowering search traffic) and a data breach
Regarding the algorithm, Wells Fargo states that this, “poses further risk to Street estimates (only three analysts, including us, have lowered estimates since 5/27).”
Emphasizing the late May slowdown, “Channel Advisor also noted SSS in the beginning of the month (5/1-5/21) were tracking up 13.3% although growth slowed following the breach / Google changes (5/22-5/31) to up 7.9%.”
Amazon and Google Shopping
Amazon’s comparable sales grew 28.1 percent year-over-year, following 27 percent growth in April. Google shopping comparable sales rose 21.4 percent year-over-year. ChannelAdvisors notes that a lot of merchants are joining the platform, thus increasing selection.
Latest Ratings for EBAY
|Jul 2016||Morgan Stanley||Maintains||Underweight|
|Jul 2016||Canaccord Genuity||Maintains||Hold|
|Jul 2016||Cantor Fitzgerald||Maintains||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.