Piper Jaffray is removing eBay (NASDAQ:EBAY) from their Top Internet Picks list and lowering tgt to $38 from $40 after their checks showed U.S. GMV meaningfully slowed in April. Firm is lowering 2Q U.S. marketplace growth to 3% y/y vs. previous 8% due to low buyer activity (eBay noted softening buyer activity at the end of Q1 on its Q1 call).
Increasing 2Q int'l marketplace to 18% y/y vs. previous 15%, driven by strength in int'l listings and only modest declines in conversion rates/ASPs. In total, only slightly lowering Q2 est - remain above consensus.
Removing as an Internet top pick as weakness in U.S. GMV will likely be a near-term overhang.
Notablecalls: NCN Ugg thinks EBAY will take a dive following these comments. His exact words:
"...The removal of the top-pick, combined with the lowering of their PT to $38 I suspect, will pressure the shares early on.."
Me? I concur. Have learned not to mess with the Ugg!