Internet Stocks in Focus: eBay Inc (NASDAQ:EBAY), Twitter Inc (NYSE:TWTR), LinkedIn Corp (NYSE:LNKD)

ebay

eBay Inc(NASDAQ:EBAY) shares have largely been trading in a range of $50 at the low and $56 at the high (with some notable exceptions) since late 2012. A range that has been this long in development tends to keep moving in the direction of the ultimate break of the range. If $50 were taken out on the downside, we could expect further price weakness to come and a major top would be in place on a long-term basis.

A look at a 10-year chart will make this clearer. Similarly on strong positive news, a breakout above $56 would signal the potential for a new leg higher that could set new record highs. While there was a move above the range back in February and March, it proved short-lived. The first big resistance level on the upside in the event of positive results would be at the life high of $59.70. Support on a break below $50 would be at $47.47.

Analysts have a consensus price target of $62.46 on eBay Inc(NASDAQ:EBAY) which indicates a 17.97% upside. The consensus rating of the stock is a BUY with a score of 2.67. There are currently 11 Hold Ratings, 19 Buy ratings, 2 Strong Buy ratings and 1 Sell rating on the stock.

The most recent analyst action consisted of TheStreet reiterating their BUY rating on the stock on March 5th, 2014.

BGC believes that the decline in LinkedIn Corp(NYSE:LNKD)‘s stock is not driven by fundamentals, and the firm thinks the company’s earnings and valuation can increase. The firm recommends that risk tolerant investors buy the stock ahead of the company’s results on May 1.

Analysts have a consensus price target of $241 on LinkedIn Corp(NYSE:LNKD) which indicates a 63% upside. The consensus rating of the stock is a Hold with a score of 2.43. There are currently 14 Buy ratings on the stock, 2 Sell ratings and 12 hold ratings.

Another recent analyst action consisted of Ned Davis Research upgrading the stock from Sell to Neutral on April 28th.

Twitter Inc(NYSE:TWTR) shares are trading up today after nearly touching the post-IPO trading low at $38.80 yesterday. The retracement from the life high at $74.73 has been brutal and sentiment is depressed. There is a large 13% of the float short, with traders positioned for more downside. Given this backdrop, any good news tonight in the form of results or guidance could see a stronger upside reaction. On a sliding scale of positive surprises, resistance levels as upside objectives could be at $45.09, $47.09, $50.71, and $51.92.

If there is a negative surprise that exceeds even the most diminished expectations, the life low at $38.80 would be the first important downside objective. What would be more difficult to determine is what could happen if price breaches below the life how. A next set of possible downsides might be at common options strikes of $37.50 or $35.

Analysts have a consensus price target of $49 on Twitter Inc(NYSE:TWTR) which indicates a 22% upside. The consensus rating of the stock is a HOLD with a score of 1.91. There are currently 14 Hold Ratings, 8 Buy ratings and 11 Sell ratings on the stock.

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