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Topeka Capital Comments on eBay (EBAY), Amazon (AMZN) Following August CA Data

September 10, 2014 10:45 AM EDT
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Price: $52.67 +1.44%

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    17 Buy, 29 Hold, 2 Sell

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    Up: 13 | Down: 11 | New: 11
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Topeka Capital analyst Victor Anthony commented on eBay (NASDAQ: EBAY) after channel advisor data showed decelerated SSS. Growth was up 5.9% year-over-year in August, compared to 9.7% in July. Anthony noted this was the slowest pace of monthly grow since 2011. Amazon.com's (NASDAQ: AMZN) August SSS were more impressive, up 45.1%, said Channel Advisor.

"Channel Advisor's SSS continued to show decelerating trends for eBay. Overall (Auctions, Fixed Price, Motors) growth for the month of August was up 5.9% YoY, down from 9.7% YoY in July, and down from 12.3% YoY in June. This is the slowest monthly growth rate we have seen since 2011, suggesting that the Cyber attack and the SEO update are still impacting the business. Fixed price growth was up 6.9%, down from 12.8% YoY in July, and down from June's healthy 18.4% YoY growth rate. Auctions was down 11% YoY while eBay Motors was up 8.4% YoY compared to July's growth rate of 8.0%," said Anthony.

"Amazon's CA SSS growth continued its accelerating path seen over the past several months with August SSS of 45.1% YoY, up from July's SSS of 40.4% YoY. This is the 7th consecutive month of accelerating monthly SSS sales for Amazon. We currently model 3Q14 North American sales growth of 27.4% YoY, up from 26.4% YoY in 2Q14, so the July and August data points support our model's directional projections. Channel Advisor also noted that in August 35.4% of Amazon's GMV was fulfilled by Amazon compared to 38.2% in July, but up from 31.5% in August 2013," he added.

For an analyst ratings summary and ratings history on eBay click here. For more ratings news on eBay click here.

Shares of eBay closed at $52.73 yesterday.



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