Investing.com -- Bernstein cut its rating  for eBay (NASDAQ:EBAY) to Market-Perform from Outperform in a note to clients on Tuesday.

The firm highlighted a “cloudy” short-term outlook for the e-commerce company amid a weakening market environment and tariff-related risks. Bernstein also lowered its price target to $65 from $70.

“The operating environment for e-commerce has changed,” Bernstein wrote. “The data we track softened through Q1, and tariffs further exacerbate the risks.” 

While eBay has outperformed in 2025, rising 6% year-to-date, analysts now question how much of the stock’s perceived defensiveness is already priced in.

China-sourced inventory remains a key concern, with Bernstein warning it could impact “GMV, product availability, and related ad spend.” 

Although only 5% of eBay’s gross merchandise value comes from the U.S.-China corridor, the firm noted that this channel has been “a core area of growth,” especially in categories like Motors Parts & Accessories.

“The channel could see disruption until tariff policies get finalized,” Bernstein said.

The analysts also cautioned that U.S. GMV and EBIT may still face some pressure in these conditions and that “there’s risk to the multiple if Q1 commentary is soft.”

Despite liking the company’s longer-term strategy, Bernstein is adopting a more cautious stance in the short run: “We conjure up multiple scenarios, but it’s all a guessing game right now.” 

The firm added, “Any softness in commentary or Q2/Q3 prints could cause that narrative to crack.”

eBay’s focus on secondhand goods and steady free cash flow may offer some insulation, but the firm believes there are too many moving parts, making them “less comfortable with an active call.”

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