EBay (EBAY) NewsBite - EBay Price Target Slashed

Tuesday, July 15, 2008 3:12 PM EDT

EBay Inc. (EBAY) opened at 27.09. So far today, the stock has hit a low of 25.95 and a high of 27.43. EBAY is now trading at 27.22, down 0.27 (-1.00%). The stock hit its 52 week high of 40.73 in October and set its 52 week low of 25.10 in March. EBAY has been dropping for most of the past year. A RBC Capital Markets analyst cut his price target on the stock today to $35 from $40, and said the effect of deals with large online retailers the company's revenue may be more muted due to less-favorable terms. The company had signed a deal with Buy.com allowing it to sell books, electronics and other items on eBay's Website without paying the full complement of fees. Technical indicators for the stock are bearish but slightly improving while S&P gives EBAY a very positive 5 STARS (out of 5) strong buy rating. If you’re looking for a hedged play on this stock, consider a July bear-call credit spread above the $30 range. EBAY stock could rise up to 10.2% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]

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