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Wells Fargo Weighs In On eBay's May Growth Slowdown

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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.

eBay

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).”

Related: eBay, Groupon And Yelp See Rising Short Interest

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

DateFirmActionFromTo
Sep 2017DA DavidsonInitiates Coverage OnBuy
Aug 2017SunTrust Robinson HumphreyInitiates Coverage OnHold
Aug 2017MizuhoReinstatesUnderweight

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

Posted-In: ChannelAdvisors Wells FargoAnalyst Color News Retail Sales Analyst Ratings

 

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