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Should You Splurge on AMZN, EBAY or GRPN for Cyber Monday?

Updated from 12:01 p.m. to reflect Amazon's neutral move in share price.

NEW YORK (TheStreet) -- Wall Street is gift-wrapping a bargain on some e-commerce stocks on Monday as investors flee despite consumers readying to drop big bucks for Cyber Monday. Groupon (GRPN - Get Report) tumbled 4.9% and Amazon (AMZN - Get Report) was flat by early afternoon. Investors remain confident in auctioneer eBay (EBAY) which has soared 2.4% to $51.71.

And why wouldn't they be confident -- the figures show consumers are choosing to shop in the comfort of their own homes more than ever before. ComScore estimates online sales surged 17.3% on Thanksgiving and Black Friday over the year earlier and that e-spending will increase 16% over the entire holiday season. On Black Friday alone, online retailers saw a record-breaking $1.2 billion in sales.

Goldman Sachs has released a report rating various high-profile internet names, including Amazon, eBay and Groupon. On Amazon, the investment firm reiterates its "buy" rating and ups its price target to $450 from $400.

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"We believe Amazon, as the e-commerce leader, is the largest beneficiary of accelerating ecommerce growth and is well positioned to continue to outpace the growth of ecommerce by taking share in new verticals and geographies, leveraging its scale, infrastructure, technology investments, existing customer base, and considerable expertise," wrote Goldman Sachs in its report.

The firm reiterated its "buy" rating and $63 price target for eBay on the company's "potential for reacceleration in 2014."

Groupon, however, was downgraded to "neutral" from "buy" with its price target a dollar lower to $11.

"We no longer believe GRPN deserves a premium valuation on decelerating revenue growth, and believe the risk/reward in owning GRPN is adequately reflected at current levels," wrote Goldman Sachs analysts.

In other news, Amazon CEO Jeff Bezos revealed on Sunday's 60 Minutes the company is testing delivery via drone, a project expected to be in operation in 4 to 5 years.

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AMZN $482.07 -1.24%
EBAY $22.01 -2.09%
GRPN $2.22 -3.90%
AAPL $94.99 -0.02%
FB $99.54 -0.21%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

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