Shares of eBay Inc. /zigman2/quotes/204653455/composite EBAY +0.89% fell 0.9% in premarket trading Thursday, after the online retailer was downgraded by Deutsche Bank analyst Kunal Madhukar, who said the company's recent success may not last. Madhukar, who cut eBay's rating to hold from buy, said the unprecedented surge in e-commerce as a result of COVID-19 lockdowns led to opportunities for companies to carve out a "unique niche" that could become "a sustainable competitive advantage" post-COVID. Madhukar says Etsy Inc. /zigman2/quotes/202790087/composite ETSY +0.32% is a good example, as management pivoted strategically by calling on its sellers to early to make facemasks, driving traffic and awareness. "Yet for eBay, despite the platform benefitting modestly from the surging online shift in consumer demand, we have yet to see any strategic shift that could suggest the company is leveraging its incremental growth into a sustainable fundamental advantage," Madhukar wrote in a note to clients. EBay's stock has gained 61.1% over the past 12 months through Wednesday, while Etsy shares have soared 288.1%, the Amplify Online Retail ETF /zigman2/quotes/206522380/composite IBUY -0.49% has run up 140.3% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.36% has gained 14.5%.
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