Wells Fargo analyst cuts eBay to Underweight and lowers target to $92
AI Market Summary
Wells Fargo downgraded eBay to \u0022Underweight\u0022 and cut its target to $92, citing intensifying resale-fashion competition and a costly promotional battle around Depop. The analyst expects elevated marketing spend to pressure near-term profitability, trimming 2027 EPS estimates by 10% and flagging potential margin compression in upcoming guidance. The note adds a near-term overhang despite eBay\u0027s strong year-to-date performance.
Impact level
● Medium
Affected assets
NCSKEBAY2USD/USDT+2.01%
AI Insight · NCSKEBAY2USD/USDTAI Insight
▼ Bearish
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Wells Fargo senior analyst Ken Gawrelski downgraded eBay to “Underweight” and cut his price target to $92, implying roughly 5% downside from current levels. He also reduced his 2027 earnings-per-share forecast by 10%, putting it meaningfully below the Wall Street consensus. Gawrelski said Depop’s marketing spending could reduce third-quarter EPS by about $0.15, and he expects management to issue weak guidance on Aug. 5.
