Shares of

eBay

(EBAY) - Get Report

hovered around a 52-week low a day after

Merrill Lynch

analyst Henry Blodget said he didn't expect catalysts for "sector multiple expansion" in the current market environment.

The Web-based auctioneer recently slid 4.75%, or $1.50, to $30.13 in

Nasdaq

trading. The shares have been as low as $29.25 today, while the 52-week closing low is $30.75. The high for the year is $127.50.

Blodget said that while eBay has a "great" business model, it "remains expensive in light of decelerating gross merchandise sales." But he added that the company "should be good in the long term."

Blodget compared the current Internet market with the PC market around 1984, saying that after a "Cambrian explosion" of IPOs, a "great extinction" occurred in which valuations were crushed and most companies disappeared.

eBay's downward move follows a decline in shares of

Yahoo!

(YHOO)

, which continued falling again today after concerns arose yesterday from a report by

Morgan Stanley Dean Witter

analyst Mary Meeker, who called her revenue estimates "conservative enough" in the "current difficult Internet advertising market."

Shares of Yahoo traded recently at $38.50, down 7.4%, or $3.06 in

Nasdaq

trading. Yahoo's shares have traded as low as $38.06, below the 52-week low of $40.56.