NEW YORK (TheStreet) -- Shares of eBay Inc (EBAY) were slumping, down 1.91% to $62.02 in early market trading Monday, after analysts at Piper Jaffray issued a negative note on the online auction site's spin-off of its payment processing service PayPal this morning.
The firm reiterated an "underweight" rating with a $50 price target.
Analysts believe investor optimism will rise into the PayPal spin-off this fall, but will fall after the move.
San Jose, Calif.-based eBay is a global technology company that enables commerce through reportable segments including marketplaces, payments and enterprise.
Separately, TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: