Shares of online auctioneer eBay are having quite a rough session. The stock has shed more than 6% on the session so far following poorly received earnings and an analyst downgrade. Starting with the earnings report, EBAY said that it lost $935.6 million, or 69 cents per share, compared to earnings of $280.9 million, or 20 cents per share, for the same period last year. The results include a charge of $1.39 billion on the write-down of goodwill stemming from its acquisition of Skype. Revenue grew 30% to $1.89 billion. Analysts were expecting earnings of 33 cents per share on revenue of $1.83 billion.
On the news, Deutsche Bank downgraded the shares to sell from hold, citing a worst case scenario in its business. Checking in with the rest of the analyst community, Zacks reports that 12 of the 20 analysts following EBAY rate it a buy or better, leaving room for more brokerage firms to follow Deutsche's lead.
However, there is a bit of a positive development for the stock on the technical front. EBAY's losses have been stemmed by key support at the 38 level. The shares have not closed a day below this region since September 17. Furthermore, the stock's 10-week moving average is rising into the region, offering up additional support.