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Downgrade takes down eBay shares

"The fundamentals aren't there," according to a stock analyst who is bucking the Street's conventional wisdom on the value of the auction site's shares.

Shares of online auctioneer eBay fell almost 7 percent today after an analyst downgraded the shares to a "sell" rating, a rare vote of no-confidence coming out of Wall Street.

Stewart Kalter, who follows the stock for brokerage Spencer Clarke LP, changed his rating on eBay based on the stock's valuation and increased insider selling recently. eBay stock fell 11.1875 to 155.0625 in trading on Nasdaq.

"We feel the fundamentals aren't there for the stock's evaluation," Kalter said. The shares, he added, are trading at 200 times revenue per share and 2,000 times 1999 earnings.

Kalter also said that recent selling by company insiders contributed to his decision to downgrade the stock. In the last month, more than 60 filings to sell restricted eBay stock have been filed with the Securities and Exchange Commission. "Once people see the selling by insiders they will follow," Kalter said.

"Technically, the stock seems overbought," Kalter said. "We see support at 80. The stock, from 80 has run up to 160 with little volume."

Bloomberg contributed to this report.