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Traders bid up eBay after downgrade

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Two 'Fast Money' traders were among the many buyers of eBay as the shares gapped lower on a Wall Street downgrade.

Piper Jaffrey said the eBay unit PayPal is facing increasing competition. First, it was Apple Pay. And now, Facebook, Samsung and regular banks are getting in on the act. Also, Paypal does not have an emerging presence in brick and mortar stores like Apple, the Thursday note stated.

"We are cautious on PayPal as we believe it does need (a) point of sale product that consumers will use," wrote Piper's Gene Munster. "Over time, we believe competitors will take their existing in-store and in-app wallets and migrate it to mobile browsers, peer-to-peer transfers, and eventually to desktop browsers."

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