Shares of EBay Inc. tumbled 5.1% in premarket trade Friday, after the e-commerce company's second-quarter results disappointed investors who were looking for a lot more than just matching analyst estimates. The stock had shot up 9.3% in two weeks to a record close ahead of the results, which were released after Thursday's close. Analyst Shyam Patil at Susquehanna recommended investors "buy the pullback" as the results show the turnaround is on track and given expectations of an expected growth acceleration in the second half of the year. Patil raised the stock price target to $41 from $40. J.P. Morgan nalyst Doug Anmuth said the results reflect "improving fundamentals," and therefore raised his stock price target to $38 from $34, but acknowledged that "expectations were elevated" given the recent rally. "Overall, we do not think the bull or bear thesis changes much with this print," Anmuth wrote in a note to clients. The stock has run up 25.2% year to date through Thursday, while the SPDR Technology Select Sector ETF has climbed 19.0% and the S&P 500 has gained 10.5%.
Copyright © 2017 MarketWatch, Inc.
Continue Reading Below