On April 23, 2003, The Wall Street Journal published an article suggesting that the analysts following eBay were excessively optimistic about eBay’s future revenue stream. The arti- cle pointed out that the second most optimistic analyst was Safa Rashtchy, the author of the U.S. Bancorp Piper Jaffray report. The author of the article, Nick Wingfield, interviewed Safa Rashtchy and asked him to consider whether his 30 percent revenue growth forecasts for eBay were unduly optimistic. Wingfield reported that Rashtchy reacted by reconsider- ing his assumption that eBay could grow at a 30 percent compounded rate between 2002 and 2010.17On January 20, 2005, eBay announced that it had missed analysts’ consensus earnings forecast by a penny a share. In response to the announcement, eBay’s stock price fell by 20 percent to $81 per share. Thereupon, Rashtchy downgraded his recommendation on eBay from “outperform” to “market perform,” stating that the stock had been priced for perfection. He also lowered his earnings estimate for 2005 by 5.3 percent, but maintained his price target of $101 per share. Discuss Rashtchy’s judgments about eBay.