Shares of eBay Inc. EBAY, -1.47% sank 3.7% in premarket trade Friday, putting them on track to open at the lowest level since January 2017, after the online marketplace was downgraded at Stifel Nicolaus, citing PayPal Holdings Inc.’s PYPL, -3.26% earnings release, which suggested weak third-qaurter gross merchandise volume (GMV) trends at eBay. Analyst Scott Devitt cut his rating to hold from buy, and slashed his price target to $35 from $43. PayPal suggested late Thursday that eBay’s marketplace GMV rose 3.4% from a year ago, well below Devitt’s estimate of 7.2% growth. “We further expect eBay’s multi-year transition to the Adyen payments platform could be bumpy given the long history that buyers and sellers have working almost exclusively with PayPal on the eBay platform,” Devitt wrote in a note to clients. EBay is scheduled to report third-quarter results after the Oct. 30 close. The stock has shed 7.5% over the past three months, while the S&P 500 SPX, -1.44% has eased 1.3%.
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