NEW YORK (TheStreet) -- Shares of eBay (EBAY) are down 2.39% to $57.03 in pre-market trading today as Piper Jaffray downgraded the company to "underweight" from "neutral" and lowered its price target to $49 from $55.
"Last September we downgraded shares of EBAY to 'neutral' based on a belief that [Apple's (AAPL)] Apple Pay will become an increasing threat to PayPal. Today, we are downgrading shares to 'underweight' based on a belief that over the next 1 to 3 years [Google's (GOOG)] Google Wallet, Apple Pay, Facebook (FB), Samsung (SSNLF) and traditional banks will weigh on PayPal valuation and market share," analysts said.
Shares of EBAY are up 12% since the beginning of February based on optimism around the PayPal spin-out, analysts noted.
However, analysts also say they could be proved wrong as new CEO Dan Schulman is "impressive" and will "energize the product line" which could move PayPal back to the front of payments innovation, or Google could acquire PayPal for its 160 million user base.
San Jose, CA-based eBay is a global technology company that enables commerce through three segments: Marketplaces, Payments and Enterprise.
Insight from TheStreet's Research Team:
Realmoneypro.com contributor Christopher Versace recently wrote recently about how 2015 will be "the year of mobile payments." Here's a snippet of what he had to say:
...by acquiring mobile payment company LoopPay, Samsung is looking to compete with Apple and Google while trying to amp up the stickiness factor of its devices with consumers. With eBay's PayPal acquiring mobile payment startup Paydiant, we know 2015 will be the year of mobile payment.