Needham & Company Initiates Coverage of Internet Stocks

Needham & Company initiated coverage of several internet stocks on Wednesday, assigning Buy ratings to:

• eBay (NASDAQ: EBAY)
• Etsy (NASDAQ: ETSY)
• Wayfair (NYSE: W)

Analysts express optimism regarding these companies' abilities to navigate macroeconomic challenges and leverage new initiatives for growth.

eBay

eBay received a Buy rating with a price target of $72 per share. Needham noted that eBay continues to lead in driving frequency among its loyal buyers. The report states:

> "We see the potential for eBay (and other large marketplaces) to maintain leadership positions through leveraging machine learning to improve search and discovery."

The focus on non-new, in-season items reportedly helps differentiate eBay from Amazon (NASDAQ: AMZN), creating cross-selling opportunities and enhancing user engagement. Additionally, Needham highlighted eBay's quality assurance efforts, which address key concerns among survey respondents.

Etsy

Etsy also earned a Buy rating with a price target of $60. Although the company has not avoided the broader slowdown in consumer spending, Needham holds optimism for Etsy's future:

> "We think the investments in search and discovery and other initiatives set the company up well to grow off their consumer wallet share gains since the pandemic."

Similar to eBay, Etsy's capability to utilize machine learning to improve its marketplace experience is seen as crucial for its long-term growth.

Wayfair

Wayfair, which has faced challenges from weak consumer spending and housing market softness, was assigned a Buy rating with a $60 target. Analysts believe Wayfair may see a turnaround in 2025 as the housing market stabilizes.

Other Coverage

Needham re-initiated coverage of Chewy (NYSE: CHWY) with a Hold rating, citing concerns about the company’s premium valuation. The firm also reinstated coverage of Beyond Inc. at Buy, highlighting potential but noting execution risks.