Sector Snap: Major Web Stocks Mixed

Major Web stocks traded mixed Monday, with Google Inc. declining after the online search leader and Salesforce.com Inc. said they expanded their relationship, with Salesforce starting to sell Google's software applications.

Google shares fell $3.42 to $454.03.

Salesforce will sell Google's programs to its 41,000 business customers and integrate the suite of applications into its own service, which aids companies in tracking and identifying customers' needs.

In a client note, Cowen & Co. analyst Peter Goldmacher said the development is better for Google than Salesforce, especially because it "means that Google Apps are going to be distributed by Salesforce's sales team, while Salesforce does not receive an equivalent benefit."

Also Monday, American Technology Research analyst Rob Sanderson said recent controversy, such as a deceleration in paid click growth that was highlighted by comScore Inc. data, "offers an excellent buying opportunity" for Google shares.

Sanderson rates the stock "Buy" with a $750 price target.

Rival Yahoo Inc.'s shares dipped 26 cents to $28.08.

Meanwhile, shares of eBay Inc. rose 69 cents to $31.56 in advance of its Wednesday first-quarter report.

In a client note, Jefferies & Co. analyst Youssef Squali predicted eBay will report "solid first-quarter results, benefiting from robust listings growth on Marketplaces and continued strength in payments and other non-gross merchandise volume business."

Squali rates the stock "Buy" with a $40 price target.

Deutsche Bank Securities analyst Jeetil Patel, however, maintained his "Sell" rating and $24 price target, saying a slowing "e-commerce/consumer spending environment, overhaul of the business model, execution risk and structural issues create for significant risk in the near term."

Online retailer Amazon.com Inc.'s stock also rose, adding $1.80 to $73.79.

Canaccord Adams analyst Domenic LaCava called the company "the exception to our discretionary spending caveat" in a note to investors.

LaCava said Amazon is continuing to experience twice the growth of the e-commerce sector, due to its brand, low pricing and stance as the top Web retail destination.

Elsewhere in the sector, shares of Internet conglomerate IAC/InterActiveCorp declined 2 cents to $20.58.