eBay Inc (NASDAQ:EBAY) is facing some heat after the launch of Apple Pay, which many believe, can be a PayPal killer. Right after the announcement of Apple Pay, eBay Inc (NASDAQ:EBAY)’s stock took a dive and it continues to do so. There is also another major reason for eBay Inc (NASDAQ:EBAY)’s stock to trade lower today, which TheStreet.com mentioned in one of its posts. Piper Jaffray downgraded its rating on eBay Inc (NASDAQ:EBAY), from ‘Overweight’ to ‘Neutral’.
According to the post, the reason for Piper Jaffray to downgrade eBay Inc (NASDAQ:EBAY)’s stock is the same that most people on the Street think, Apple Pay would provide a tough competition to PayPal especially due to the kind of credit card data that Apple Inc. (NASDAQ:AAPL) has of its users. Following the downgrade, Piper Jaffray also reduced its price target on eBay’s stock from $63 to $55.
As of June 30, 2014, Carl Icahn’s Icahn Capital LP owns over 30 million shares in eBay Inc (NASDAQ:EBAY).