eBay (EBAY Stock) – Stock price drops ahead of August 11 earnings report

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eBay Inc. (#eBay) – The longtime e-commerce company with a market capitalization of $ 45 billion is expected to post quarterly revenue for the end of June on Wednesday, August 11, after the market has closed. Zack forecasts revenue of $ 3.01 billion, higher than the same quarter of last year which was $ 2.87 billion (or up 5.01%), while return per share is expected be $ 0.96, lower than the same quarter last year which was $ 1.08 (or -11.11%).

For the most recent quarter, sales were $ 3.02 billion, versus a forecast of $ 2.97 billion, along with a return on equity of $ 1.09 versus a forecast of $ 1.07 . However, eBay’s stock price fell more than 10% after posting earnings. On April 28, the actions were degraded by Wedbush and Susquehanna in view of the progress of the vaccination program against the Covid-19.

The highlight of the first quarter was the fact that eBay reached 4 million merchant subscribers worldwide, with over 80% of transactions completed in the United States. In addition to simplifying the payment system and giving sellers an easier way to run their business and more options for payment methods, the company has reduced unpaid fixed price transactions by over 80% and ads. Promotional products generated more than $ 224 million in revenue in the first quarter, an increase of 64%.

However, due to the advancement of the vaccination program and the relaxation of containment measures, the buying force is once again returning to the retail sector. This means online retail sales may not be as strong as they were in the previous quarter.

As for the company’s stock price, it was up 30.05% at the last close of $ 65.35, a sharp drop with a bearish divergence from the 52-week high of $ 74.13 and a dip beyond the MA50, making the $ 60.00 MA200 a target. If this week’s earnings report is lower than market expectations this downtrend could continue, while if the report is good the first target will be the MA50 area at $ 67.50 and the next higher target. original to the $ 74.00 area.


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