eBay Stock Could Fall into Fall

eBay (EBAY) is in focus today, after sending e-commerce titan Amazon (AMZN) a cease-and-desist letter. Specifically, the company said it “uncovered an unlawful and troubling scheme on the part of Amazon to solicit eBay sellers to move to Amazon’s platform.” The firm said it “will take the appropriate steps, as needed, to protect eBay,” should Amazon not end the poaching practices — which were reportedly discovered after an eBay seller was contacted by an Amazon employee under false pretenses. However, while EBAY stock is in the black this afternoon, those gains could fade before November, if past is prologue.

At last check, EBAY shares are up 0.9% to trade at $32.84. From a longer-term perspective, the stock has been in a channel of lower highs and lows since peaking in early February, and just yesterday touched an annual low of $32.34.

Those losses could continue in the short term, too. As alluded to earlier, EBAY has been among the worst stocks to own in the month of October, historically. Over the past 10 years, the security has ended the month higher just 30% of the time, averaging a loss of 2.15%, per data from Schaeffer’s Senior Quantitative Analyst Rocky White.

It’s also worth noting that the company is tentatively slated to report earnings in mid-October. EBAY stock has moved lower the day after five of the last six earnings reports, including a 10.1% bear gap after the company reported in July, and a 5.6% swoon in April.

Should EBAY once again fall into fall, a round of analyst downgrades could exacerbate selling pressure on the underperformer. Despite underperforming the broader S&P 500 Index (SPX) by 16 percentage points in the past 60 sessions, EBAY still boasts 15 “buy” or better endorsements from analysts, compared to 11 “holds” and not a single “sell.”