Why eBay Stock Moved To All-Time High Levels

eBay Stock Gets To New Highs After Q2 Earnings Report

Shares of eBay moved to all-time high levels soon after the company released its second-quarter results. eBay reported revenue of $2.7 billion and adjusted earnings of $0.99 per share, missing analyst estimates on revenue and beating them on earnings.

According to the report, annual active buyers declined by 2% to 159 million while annual active sellers increased by 5% to 19 million. The report was a bit noisy as eBay Korea business was reported as discontinued operations, and it looks that the initial reaction to the earnings report was muted due to the headline revenue miss.

In the third quarter, eBay expects to report revenue of $2.42 billion – $2.47 billion, while adjusted earnings are projected to total $0.86 – $0.90 per share.

What’s Next For eBay Stock?

Analysts expect that eBay will report earnings of $3.95 per share in 2021 and $4.46 per share in 2022, so the stock is trading at a forward P/E of about 17, which is cheap for the current market environment.

The company’s second-quarter report indicated that the number of active buyers declined as economies reopened. However, the world is worried about the spread of the Delta variant of coronavirus, and some countries have already decided to re-introduce strict virus containment measures.

It remains to be seen whether new problems on the virus front will provide additional support to eBay in the third quarter, but it looks that traders are ready to bet that the company’s performance will remain solid in the second half of this year.

S&P 500 is trading near all-time high levels, and many growth stocks are very expensive. In this light, eBay stock has good chances to attract enough interested buyers who search for attractively valued companies. There is more room for multiple expansion, and the stock has a decent opportunity to continue its upside move in the upcoming weeks.

For a look at all of today’s economic events, check out our economic calendar.

eBay Tops Earnings Estimates, Misses on Revenue

The e-commerce leader for physical and digital merchandise, eBay reported better-than-expected earnings in the second quarter but revenue fell short of analysts’ expectations.

The San Jose, California-based e-commerce giant reported quarterly adjusted earnings (EPS) of $0.99 ​ per share, beating the Wall Street consensus estimates of $0.97 per share. But the company’s revenue plunged about 7% to $2.67 billion from a year earlier. That was also lower than the market expectations of $2.97 billion.

eBay forecasts revenue in the range of $2.42 billion to $2.47 billion in the third quarter. eBay’s Board of Directors has also declared a cash dividend of $0.18 per share of the company’s common stock.

eBay shares gained over 1% to $68.03 on Wednesday. The stock has gained over 30% so far this year

Analyst Comments

“Narrow-moat eBay topped consensus estimates for revenue and adjusted EPS in the second quarter, with $2.7 billion and $0.99 per share narrowly eclipsing FactSet consensus estimates of $2.6 billion and $0.96. Results presented mixed signals for investors, with revenue up 11% on a foreign exchange-neutral basis (largely attributable to better-than-expected managed payments penetration) but with the firm seeing softness in promoted listings monetization (down about 7% sequentially by our calculations) and active buyer growth (down 2% from a year ago) to 159 million,” noted Sean Dunlop, equity analyst at Morningstar.

“As the dust settles from a slew of recent corporate actions, including the divestiture of the eBay classifieds business in June and the anticipated sale of eBay’s South Korean marketplace, we anticipate raising our fair value estimate a mid-single-digit percentage, but note shares look fully valued at prevailing market prices.”

eBay Stock Price Forecast

Five analysts who offered stock ratings for eBay in the last three months forecast the average price in 12 months of $75.20 with a high forecast of $81.00 and a low forecast of $65.00.

The average price target represents a 10.56% change from the last price of $68.02. From those five analysts, four rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Piper Sandler cut the price objective to $79 from $81. Credit Suisse raised the stock price forecast to $80 from $78. Evercore ISI lifted the target price to $70 from $66. UBS upped the price target to $67 from $65. Piper Sandler raised the target price to $81 from $71.

Check out FX Empire’s earnings calendar

Today’s Market Wrap Up and a Glimpse Into Thursday

Stocks were mostly higher on the heels of inflation data that could have been worse. The Dow Jones Industrial Average tacked on 220 points to reach a new record high thanks largely to gains in Caterpillar, Goldman Sachs and Home Depot. The S&P 500 was also higher while the tech-heavy Nasdaq edged lower.

Consumer prices inched up 0.5% in July vs. the previous month, sending the consumer price index to a reading of 5.4%. The results were slightly higher than economists had predicted, but the core rate, which excludes food and energy, increased by a modest 0.3%, which was better than expected.

Investors have less to worry about on the inflation front for the time being. According to reports, however, economists are saying the economy is not out of the woods yet and pricing pressure could kick in. As it stands, investors sold out of tech names and flocked to stocks that are more cyclical in nature.

Stocks to Watch

  • Cryptocurrency exchange Coinbase advanced 3% on better-than-expected Q2 earnings and revenue.
  • Meme stock Clover Health reported its Q2 results, and the stock is rallying 7% in after-hours trading. The company grew its revenue 140% vs. year-ago levels and according to management “is on a USD 1.6 billion annual revenue run rate.”
  • Shares of fast-food restaurant Wendy’s gained almost 4% after the company reported better-than-expected Q2 results. Wendy’s lifted its quarterly dividend by 20% to USD 0.12 per share, which is payable in mid-September. The company is also investing in hundreds of delivery kitchens in the coming years amid a partnership with REEF.
  • eBay’s stock fell slightly more than 2% on Q2 revenue results that were lighter than expected. The auction company’s revenue came in at USD 2.67 billion while Wall Street was looking for USD 3 billion.
  • Shares of speaker company Sonos are rallying in extended-hours trading. The stock is up 7% after Sonos reported a surprise profit while the Street was bracing for a loss. The company is benefiting from a trend of consumers doling out more for high-quality in-home entertainment, including speakers.

Look Ahead

On the earnings front, Walt Disney, DoorDash and Airbnb are on tap. Investors will also get another dose of consumer data on Friday when the latest University of Michigan Consumer Sentiment rate is released.

eBay Shares Fall Ahead of Q2 Earnings

The e-commerce leader for physical and digital merchandise eBay is expected to report its second-quarter earnings of $0.97 per share, which represents a year-over-year decline of over 10% from $1.08 per share seen in the same quarter a year ago.

The San Jose, California-based e-commerce giant would post revenue growth of about 4% to $2.97 billion. The company has beaten earnings per share (EPS) estimates at all times in the last four quarters.

According to ZACKS Research, for the second quarter of 2021, eBay expects net revenues of $2.98-$3.03 billion. On an FX-neutral basis, year-over-year growth in revenues is anticipated to be 8-10%. Non-GAAP earnings are anticipated to be 91-96 cents per share.

eBay shares have gained over 30% so far this year. But the stock fell 0.21% to $65.35 on Monday.

Analyst Comments

eBay reports 2Q21 earnings on 8/11 AMC. We updated our model to reflect the sale of the South Korea biz, which is expected to close late 4Q21 / early 1Q22 and mgmt’s recent coloron eBay ramping its ’21 share buyback to $5BN vs. $2BN with the close of the Classified’s biz sale implying ~$4.7BN in buybacks from 2Q-4Q. Given the model changes, DCF-based PT to $72 vs. $65, maintain Market Perform,” noted John Blackledge, equity analyst at Cowen.

“We estimate total revenue of $2.8BN, +24.5% y/y vs expected +29.5% y/yin 2Q21 and +25.5% y/y in 3Q20. We forecast US Marketplace revenue +10% y/y in 3Q21vs +21% in 2Q21, and Int’l Marketplace revenue of +5.3% y/y vs. our estimated +6.6% y/y in2Q21. We now forecast Adj. EBITDA of $915BN, down (2.9%) y/y, implying3Q21 EBITDA margin of 32.5%. We now forecast 3Q21 Adj. EPS of $0.87 vs. $1.10.”

eBay Stock Price Forecast

Five analysts who offered stock ratings for eBay in the last three months forecast the average price in 12 months of $75.20 with a high forecast of $81.00 and a low forecast of $65.00.

The average price target represents a 15.07% change from the last price of $65.35. From those five analysts, four rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Several other analysts have also updated their stock outlook. Credit Suisse raised the stock price forecast to $80 from $78. Evercore ISI lifted the target price to $70 from $66. UBS upped the price target to $67 from $65. Piper Sandler raised the target price to $81 from $71.

Check out FX Empire’s earnings calendar

eBay Nearing Support Ahead of Earnings

eBay Inc. (EBAY) reports Q2 2021 earnings after Wednesday’s closing bell, with analysts looking for a profit of $0.95 per-share on $3.0 billion in revenue. If met, earnings-per-share (EPS) will mark a 12% decline compared to the same quarter last year. The stock sold off more than 10% in April, despite meeting Q1 estimates with a 26.4% year-over-year revenue increase, and rallied into July’s all-time high in the mid-70s.

Riding the Non-Fungible Token (NFT) Wave

The e-commerce provider has outperformed larger rivals so far in 2021, posting a 30% return compared 2.7% for Amazon.com Inc. (AMZN) and less than 1% for Dow component Walmart Inc. (WMT). The explosive growth of non-fungible tokens (NFT) has underpinned revenue and investor sentiment since sales were introduced in May. It’s a perfect place for this initiative, with digital trading cards, music, entertainment, and art backed up by blockchain technology.

eBay discussed this emerging growth channel at the time of the release, noting that “NFTs offer greater access to a broader audience of collectors and creators. In the same way digital publishing brought more exposure for writers, digital collectibles bring greater opportunity for artists and creators. We plan to double down on this idea – combining eBay’s global reach with the principle that anyone can find almost anything on our platform”.

Wall Street and Technical Outlook

Wall Street consensus remains unenthusiastic, with an ‘Overweight’ rating based upon 7 ‘Buy’, 2 ‘Overweight’, 10 ‘Hold’, and one ‘Underweight’ recommendation. No analysts are recommending that shareholders close positions. Price targets range from a low of $59.20 to a Street-high $81.00 while the stock closed Friday’s session on top of the median $66.00 target. This suggests the company will need to raise Q3 guidance to trade at higher prices.

eBay completed a round trip into the 2018 high at 46.99 in June 2020 and broke out, entering an uptrend that stalled just above 60. The stock cleared that barrier in June 2021, lifted into July’s all-time high at 74.13, and turned south into August. It’s currently trading below the 50-day moving average for the first time since May and testing support in the mid-60s. So far at least, this looks like garden variety profit-taking, suggesting even higher prices in coming months.

For a look at all of today’s economic events, check out our economic calendar.

Disclosure: the author held no positions in aforementioned securities at the time of publication. 

Earnings to Watch Next Week: Cable One, BioNTech, eBay, Walt Disney and Baidu in Focus

Earnings Calendar For The Week Of August 9

Monday (August 9)

IN THE SPOTLIGHT: CABLE ONE, BIONTECH

CABLE ONE: The U.S.-based broadband communications provider is expected to report earnings of $11.19 per share for the second quarter, representing a year-on-year increase of over 5% from a year earlier, up from 10.63 per share seen in the same period a year ago.

The Phoenix-based company would post revenue growth of over 17% to $385 million, up from $328.3 million posted a year ago. The company has beaten earnings per share (EPS) estimates in three of the last four quarters, according to ZACKS Research.

BIONTECH: The biotechnology company BioNTech is expected to report earnings of $8.35 per share for the second quarter, representing a year-on-year increase of over 2,000% from a year earlier.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE AUGUST 9

Ticker Company EPS Forecast
DRNA Dicerna Pharmaceuticals $0.41
APD Air Products & Chemicals $2.36
SGMS Scientific Games $0.01
TGNA Tegna $0.49
DISH Dish Network $0.89
AMC AMC Entertainment -$0.94
OSH Oak Street Health -$0.33
CHGG Chegg $0.37
CABO Cable One Inc $11.19
CF CF Industries $1.56
ACM AECOM $0.72
WES Western Gas Partners $0.57
HALO Halozyme Therapeutics $0.43
QLYS Qualys $0.68
DDD 3D Systems $0.05
CBT Cabot $1.18
NHI National Health Investors $0.84
DOOR Masonite International $2.12
ESE ESCO Technologies $0.82
IPAR Inter Parfums $0.40
STE Steris $1.49
RCKT Rocket Pharma -$0.66
ITCI Intra Cellular Therapies -$0.79
ELY Callaway Golf $0.01
BNTX BioNTech SE $7.54
TSN Tyson Foods $1.60
HE Hawaiian Electric Industries $0.49
ENR Energizer $0.67
SYKE Sykess $0.58
RDNT RadNet $0.14
HBM HudBay Minerals Ord Shs $0.09
ACKAY Arcelik ADR $0.46

Tuesday (August 10)

Ticker Company EPS Forecast
JHX James Hardie Industries $0.28
SYY Sysco $0.60
IHG Intercontinental Hotels $0.46
ARMK Aramark $0.02
TAC TransAlta USA -$0.01
VSH Vishay Intertechnology $0.59
IIVI Ii Vi $0.75
YPF YPF $0.39
PAAS Pan American Silver USA $0.34
PAY VeriFone Systems $0.01
JAMF Jamf $0.05
COKE Coca Cola Bottlingconsolidated $5.78
DAR Darling Ingredients $0.86
TDG TransDigm $2.97

Wednesday (August 11)

IN THE SPOTLIGHT: EBAY

The e-commerce leader for physical and digital merchandise eBay is expected to report its second-quarter earnings of $0.96 per share, which represents a year-over-year decline of over 11% from $1.08 per share seen in the same quarter a year ago.

The San Jose, California-based e-commerce giant would post revenue growth of about 4% to $2.97 billion. The company has beaten earnings per share (EPS) estimates all times in the last four quarters, according to ZACKS Research.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE AUGUST 11

Ticker Company EPS Forecast
CIB Bancolombia $0.53
DM Dominion Midstream Partners -$0.09
ELP Companhia Paranaense De Energia $0.63
CAE Cae USA $0.14
ENS Enersys $1.20
PRGO Perrigo $0.60
HAE Haemonetics $0.45
AIT Applied Industrial Technologies $1.17
RPRX Repros Therapeutics $0.70
VERX Vertex Inc. Cl A $0.05
WIX WIX -$0.43
WEN Wendy’s $0.18
GOCO Gocompare.Com -$0.03
AZPN Aspen Technology $1.47
FNV Franco Nevada $0.93
RGLD Royal Gold Usa) $0.90
CACI Caci International $5.56
RXT Rackspace $0.18
AVT Avnet $0.79
UGP Ultrapar Participacoes $0.06
EBR Centrais Eletricas Brasileiras $0.28
EBAY eBay $0.96

Thursday (August 12)

IN THE SPOTLIGHT: WALT DISNEY, BAIDU

WALT DISNEY: The world’s leading producers and providers of entertainment and information is expected to report its fiscal third-quarter earnings of $0.55 per share, which represents year-over-year growth of over 580% from $0.08 per share seen in the same quarter a year ago.

The family entertainment company would post over 42% to $16.82 billion. The company has beaten earnings per share (EPS) estimates all times in last four quarters, according to ZACKS Research.

Disney is building content assets that enable it to take advantage of the significant direct-to-consumer streaming opportunity ahead. Disney’s underlying IP remains best-in-class, supporting long term content monetization opportunities,” noted Benjamin Swinburne, equity analyst at Morgan Stanley.

“During this period of FCF pressure from Parks closures, ESPN’s FCF generation is key to driving down leverage. Historical cycles suggest a potential return to above prior peak US Parks revenues in FY23”

BAIDU: The leader in the Chinese search industry in terms of user market share is expected to report its second-quarter earnings of $1.93 per share, which represents a year-over-year decline of over 7% from $2.08 per share seen in the same quarter a year ago.

The Chinese tech giant will report full-year earnings of $8.60 per share for the current financial year, with EPS estimates ranging from $8.28 to $9.09, according to ZACKS Research.

Baidu has provided better disclosure and has struck a constructive tone on its AI initiatives. We find it well-positioned in certain industrial applications. We also like its rich cash position and strategic investments,” noted Gary Yu, equity analyst at Morgan Stanley.

“Our price target reflects materialization of AI investments, but we highlight milder near-term growth vs. peers amid risks from competition. The company appears well-positioned to ride the next Internet wave, but patience is needed. Our price target implies 16x 2022e non-GAAP P/E, vs. the 10-30x trading band since 2018.”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE AUGUST 12

Ticker Company EPS Forecast
BR Broadridge Financial Solutions $2.19
AEG Aegon $0.15
BAM Brookfield Asset Management USA $0.72
PLTR Palantir Technologies Inc. $0.03
FLO Flowers Foods $0.28
BAP Credicorp USA $9.65
PVG Pretium Resources $0.13
DIS Walt Disney $0.55
BRFS BRF $0.07
SBS Companhia De Saneamento Basico $0.24
AEBZY Anadolu Efes ADR $0.00
MIDD Middleby $2.07
TKC Turkcell $0.16
BIDU Baidu $13.18

Friday (August 13)

There are no major earnings scheduled.

Best Dividend Stocks August 2021

The hallmark way I go about finding the best dividend stocks…the outliers is by looking for quiet Big Money trading activity. Oftentimes, that can be institutional activity. I’ll go over why following the Big Money is so important in a bit. But, the 5 stocks I see as long-term dividend growth candidates are MA, SHW, WSM, EBAY, & ORCL.

Over decades, I’ve learned that the true tell on great stocks is that big money consistently finds its way into the best companies out there… especially dividend paying stocks. Some of the biggest returns ever have come from holding stocks for many years and reinvesting dividends.

I want the odds on my side when looking for the highest quality dividend stocks…and I own many of them.

So, let’s get into it.

Up first is Mastercard Inc. (MA), which is a large credit card company. They’ve been raising their dividend for years.

Let’s first start with the technical picture.

When deciding on a strong candidate for long-term dividend growth, I look for stocks leading in price:

  • 1-month performance (+7.08%)
  • Historical Big Money buy signals

Below are the Big Money signals Mastercard has made since 2015. Blue bars are showing that MA was seeing big buy activity according to MAPsignals. Typically, the more Big Money signals, the stronger the stock:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Mastercard has a strong dividend history:

  • 3-year dividend growth rate (+45.7%)
  • Current dividend per share = .44
  • Forward yield = .45%
  • 3-year earnings growth rate (+25.12%)

Next up is Sherwin-Williams Co. (SHW), which is a leading seller of paint materials. They’ve also been a dividend grower for years.

When deciding on a strong candidate for long-term dividend growth, it’s a good idea to look for many years of dividend increases.

Now let’s look at the recent performance:

  • 1-month performance (+4.95%)
  • Historical big money signals

Below are the big money signals that Sherwin-Williams has made since 2015. I expect more buy signals in the years to come.

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Sherwin-Williams has a nice dividend history. Their earnings growth has been stellar as well:

  • 3-year dividend growth rate (+16%)
  • Current dividend per share = .55
  • Forward yield = .77%
  • 3-year earnings growth rate (+11.87%)

Next, I’m looking at Williams-Sonoma, Inc. (WSM), which is a leading home retailer company. They have a solid dividend history.

When deciding on a strong candidate for long-term dividend growth, recent underperformance is not a bad thing:

  • 1-month performance (-1.15%)
  • Historical Big Money signals

Below are the big money signals that Williams-Sonoma has made since 2015. It’s recently showed a Big Money buy signal:

Chart, histogramDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you should look under the hood to see if the fundamental picture supports a long-term investment. As you can see, WSM has a strong dividend history:

  • 3-year dividend growth rate (+9%)
  • Current dividend per share = .59
  • Forward yield = 1.5%
  • 3-year earnings growth rate (+46.58%)

Next, I’m looking at eBay, Inc. (EBAY), which is a leading online auction marketplace. They recently added a dividend.

When deciding on a strong candidate for long-term dividend growth, recent outperformance is great:

  • 1-month performance (+6.86%)
  • Recent Big Money signals

Below are the Big Money signals that eBay has made since 2015.

Chart, histogram

Description automatically generated

On top of technicals, when deciding on the best dividend stock, let’s check up on the fundamentals. As you can see, eBay has recently started paying a dividend.

  • 1-2 year dividend growth rate (+14%)
  • Current dividend per share = .18
  • Forward yield = .98%
  • 3-year earnings growth rate (+130.48%)

Lastly, I’m looking at Oracle Corp. (ORCL), which is a leading enterprise technology company. They’ve been growing their dividend for years.

When deciding on a strong candidate for long-term dividend growth, I like to look for recent leaders:

  • 1-month performance (+12.11%)
  • Recent Big Money signals

Below are the Big Money signals that ORCL has made since 2015.

ChartDescription automatically generated
Source: MAPsignals.com

On top of technicals, when deciding on the best dividend stock, you gotta see if the fundamental picture supports a long-term investment. Oracle has been a steady grower:

  • 3-year dividend growth rate (+11%)
  • Current dividend per share = .32
  • Forward yield = 1.46%
  • 3-year earnings growth rate (+93.1%)

The Bottom Line

MA, SHW, WSM, EBAY, & ORCL represent solid dividend choices. Given the strong historical dividend growth and Big Money signals, these stocks could be worth an extra look for a dividend investor.

Disclosure: the author holds no positions in MA, SHW, WSM, EBAY, & ORCL at the time of filming.

To learn more about the MAPsignals process, click here: www.mapsignals.com

Disclaimer

UK Competition Watchdog Approves Adevinta Acquisition of Ebay Classified Ads Unit

The Competition and Markets Authority said in a statement it would not refer the acquisition or eBay‘s purchase of a minority stake in Adevinta to further investigation.

The two companies said in March they planned to sell three smaller British units in order to secure regulatory approval for a long-planned tie-up of their global classified ads businesses.

Adevinta in a statement welcomed the CMA move, and said it targeted completion of the acquisition in the second quarter this year, subject to regulator approval in Austria.

(Reporting by Tom Wilson; Editing by Dhara Ranasinghe)

eBay Shares Slump Over 6% as Q2 Earnings Forecast Disappoints

US e-commerce giant eBay’s shares slumped over 6% in extended trading on Wednesday after the eCommerce leader for physical and digital merchandise forecast earnings less than what Wall Street had expected for the second quarter of 2021.

The San Jose, California-based company forecasts diluted non-GAAP earnings per share (EPS) in the range of $0.91 – $0.96 for the current quarter, below Wall Street’s consensus estimates of $1.02 per share. The company’s revenue is expected to be in the range of $2.98 – $3.03.

Following this, eBay shares slumped over 6% to $58.50 in extended trading on Wednesday.

However, in the first quarter of 2021, the company reported non-GAAP EPS per diluted share of $1.09 on revenue of $3.03 billion, which beat analysts’ EPS expectations of $1.08 on revenue of $2.97 billion, respectively.

eBay has also declared a cash dividend of $0.18 per share of the company’s common stock.

Analyst Comments

“The company guided below the Street. My 2022 EPS number is still much higher than the Street but for now that’s not going to be investor focus. This year the company gave a lower Q2 than Street guide and talked about a challenged back half as people get out more. So, I don’t think investors will swivel and look at the 2022 potential just yet,” noted Chaim Siegel, equity analyst at Elazar Advisors.

“2022 EPS of $7.15 potential with brining payments in-house so 14x $7.15 is almost 70% 12-month upside potential. But again, the focus won’t be next year when the company’s talking about headwinds in growth rates this year.”

eBay Stock Price Forecast

Twenty-one analysts who offered stock ratings for eBay in the last three months forecast the average price in 12 months of $71.67 with a high forecast of $84.00 and a low forecast of $62.00.

The average price target represents a 15.00% increase from the last price of $62.32. Of those 21 analysts, ten rated “Buy”, 11 rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $63 with a high of $79 under a bull scenario and $45 under the worst-case scenario. The firm gave an “Equal-weight” rating on the e-commerce corporation’s stock.

eBay has shifted its strategy to focus on non-new, in-season, refurbished, collectible goods and continues to repurchase shares. New growth drivers, such as Promoted Listings and Payment intermediation (to be rolled out 2021) are on track,” noted Brian Nowak, equity analyst at Morgan Stanley.

Several other analysts have also updated their stock outlook. Evercore ISI raised the stock price forecast to $66 from $65. Credit Suisse lifted the target price to $78 from $76. Piper Sandler increased their price target to $75 from $66 and gave the stock an “overweight” rating.

Moreover, DA Davidson increased their price target to $80 from $67 and gave the stock a “buy” rating. Barclays increased their price target to $84 from $82 and gave the stock an “overweight” rating.

Check out FX Empire’s earnings calendar

Starboard Value Sells 74% Stake in eBay; Buy With Target Price of $64

Starboard Value announced that it sold 74% of its stake in an American multinational e-commerce corporation, eBay, during the second quarter when the activist investment firm ended its proxy fight following the hire of Jamie Iannone as the new CEO of the e-commerce company.

According to a regulatory filing on August 14, the New York-based hedge fund held 2,090,000 shares of the e-commerce company, compared to 7,920,000 it reported in on May 15 filing.

eBay reported that its revenue rose to $2.87 billion in the second quarter, from $2.42 billion a year ago, beating market estimate of nearly $2.8 billion. The e-commerce company forecast a full-year adjusted profit between $3.47 and $3.59 per share.

eBay shares ended 0.018% higher at $56.29 on Friday. The stock is up over 40% so far this year.

eBay stock forecast

Twenty-seven analysts forecast the average price in 12 months at $62.32 with a high forecast of $82.00 and a low forecast of $52.00. The average price target represents a 10.71% increase from the last price of $56.29. From those 27, 11 analysts rated ‘Buy’, 16 rated ‘Hold’ and none rated ‘Sell’, according to Tipranks.

Morgan Stanley target price is $64 with a high of $71 under a bull scenario and $51 under the worst-case scenario. eBay had its price target upped by stock analysts at Stifel Nicolaus from $68 to $70. The firm presently has a “buy” rating on the e-commerce company’s stock.

Other equity analysts also recently updated their stock outlook. Mizuho upped their target price on shares of eBay to $52 from $46 and gave the stock a “neutral” rating. JPMorgan Chase & Co. upped their target price to $60 from $52 and gave the stock a “neutral” rating. Benchmark upped their target price to $69 from $60 and gave the stock a “buy” rating.

BMO Capital Markets lowered from a “positive” rating to a “market perform” rating and upped their target price for the stock to $59 from $52. At last, Wells Fargo & Co upped their target price to $58 from $50 and gave the stock an “equal weight” rating.

We think it is good to buy at the current level and target $64 as 50-day Moving Average and 100-200-day MACD Oscillator signals a strong buying opportunity.

Analyst view

“Near-term trends are strong, and we remain positive payments and ads…but we think execution on eBay’s 3 new growth pillars (for sustained growth into ‘21) will be key to driving material upside from here,” said Brian Nowak equity analyst at Morgan Stanley.

“eBay has shifted its strategy to lower growth and cost rationalization and is aggressively repurchasing shares. New growth drivers, such as Promoted Listings and Payment intermediation (to be rolled out in full mid-2020) are on track.”

Upside and Downside risks

Upside: 1) eBay stabilizes and re-expands its core marketplace GMV. 2) eBay executes better than expected on the payments and promoted listings opportunities, highlighted by Morgan Stanley.

Downside: 1) core marketplace GMV continues to deteriorate. 2) eBay misexecutes on the payments and promoted listings opportunities.

eBay Could Roll Over Into Intermediate Correction

eBay Inc. (EBAY) sold off 3.1% after last week’s Q2 2020 earnings report, despite beating estimates and guiding Q3 and fiscal year above already-aggressive consensus. The stock has since regained those losses but dwindling volume lowers odds it will challenge the July 13th all-time high at 61.06, at least in the short-term. The apathetic tape also indicates that overbought technical readings are taking hold, raising odds for a long-overdue downturn.

eBay Takes Market Share From Competitors

The e-commerce giant has booked impressive market share gains in the digital retail space as a result of the COVID-19 pandemic. Investors and traders have taken note, more than doubling the stock price since the March low while posting a 57% return in 2020. These outsized gains have raised legitimate doubts about valuation while lifting relative strength oscillators into the most overbought levels in the company’s 22-year public history.

In addition to growing technical challenges, eBay got into hot water in June after the U.S. Attorney’s office in Massachusetts indicted former employees for an alleged cyberstalking campaign that targeted the publisher and editor of a newsletter who wrote critical comments. Early evidence suggests that senior executives were involved in the diabolical decision-making, raising the potential for bearish headlines when testimony is taken later this year.

Wall Street And Technical Outlook

Wall Street rates eBay as a ‘Moderate Buy’, based upon 11 ‘Buy’, 16 ‘Hold’, and 1 ‘Sell’ recommendation. That’s positively bearish compared to other e-commerce plays, suggesting that many analysts think the company is now overvalued. Price targets currently range from a low of $52 to a street-high $82 while the stock is trading $6 below the median $62 target. This placement indicates that price could add additional points with ease, despite growing headwinds.

Technically speaking, eBay has fired on all cylinders since breaking out above 2018 resistance at 46.99 in June. The rally has added 10 points since that time while accumulation readings continue to support higher prices. However, a distribution wave that started in July may be picking up steam, perhaps setting the stage for an intermediate correction that offers a low-risk buying opportunity near the breakout level.

eBay Agrees to Sell its Classifieds Business to Adevinta; Target Price $65

eBay Inc, an American multinational e-commerce corporation based in California, announced that it has agreed to sell its Classifieds ads business to Norway’s Adevinta for a total consideration value of $9.2 billion.

As part of the deal, eBay will receive $2.5 billion in cash and around 540 million Adevinta shares which would represent an equity stake of approximately 44% based on the number of Adevinta’s outstanding shares, as of the end of the second quarter, and a 33.3% voting stake, the company said.

The combined group will have solid market positions across 20 countries, with Europe its biggest market, covering 1 billion people with 3 billion monthly visits. The deal is anticipated to close by Q1 next year, targeting $150-$185 million in annual savings on EBITDA within three years.

Executive’s comments

“With the acquisition of eBay Classifieds Group, Adevinta becomes the largest online classifieds company globally, with a unique portfolio of leading marketplace brands. We believe the combination of the two companies, with their complementary businesses, creates one of the most exciting and compelling equity stories in the online classifieds sector,” said Rolv Erik Ryssdal, CEO of Adevinta.

“This deal is a testament to the growth and potential of the eBay Classifieds business,” Alessandro Coppo, SVP and GM, eBay Classifieds Group said in a press release. “We are excited for our local classifieds brands to join Adevinta and shape a global leader in an industry full of potential.”

eBay stock forecast

Twenty-four analysts forecast the average price in 12 months at $56.38 with a high forecast of $77.00 and a low forecast of $44.00. The average price target represents a -3.57% decrease from the last price of $58.47. From those 24, ten analysts rated ‘Buy’, 13 rated ‘Hold’ and one rated ‘Sell’, according to Tipranks.

Morgan Stanley target price is $62 with a high of $70 under a bull scenario and $49 under the worst-case scenario. Evercore ISI raised target price to $49 from $41; Jefferies raised target price to $58 from $52; UBS raised target price to $54 from $41 and Stifel raised it to $66 from $52.

Other equity analysts also recently updated their stock outlook. eBay had its price target boosted by analysts at SunTrust Banks from $50 to $54. The firm presently has a “hold” rating on the e-commerce company’s stock. Deutsche Bank raised eBay rating to a “buy” and upped their target price for the company to $57 from $42.

We second Morgan Stanley and Deutsche Bank on eBay stock outlook. We also think it is good to buy at the current level and target at least $65 as 50-day Moving Average and 100-200-day MACD Oscillator signals a strong buying opportunity.

Analyst view

“eBay has shifted its strategy to lower growth and cost rationalization and is aggressively repurchasing shares. New growth drivers, such as Promoted Listings and Payment intermediation (to be rolled out in full mid-2020) are on track,” said Brian Nowak equity analyst at Morgan Stanley.

Stock Market: The Earnings of Microsoft, Amazon And More

Ford Motor

EPS forecast: $0.26

Revenue forecast: $36.73B

Ford has been going through a hard time during the past few years as the demand for its cars, particularly sedans, fell. Now one of America’s largest automakers is undertaking an $11 billion restructuring plan which implies layoffs, closing factories overseas, and building capacity to manufacture electric and driverless cars. As a result, investors will want to see what progress the company made in these areas.

The stock has been within the general downtrend since 2014. In the first half of 2019, the price tried to recover but met resistance around $10.50, formed a double top and turned lower. In October, Ford managed to show a bullish correction recovering from $8.45 to the 200-day MA at $9.30. Last week the stock closed above the 50-week MA ($9.214). All in all, if the financial results are decent enough, there’s technical potential for an extension to $9.64 (September high) and $10.00 (resistance line, 200-week MA). This area, in turn, will be a great obstacle for buyers. Support lies at $8.70 and $8.45.

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Microsoft

EPS forecast: $1.24

Revenue forecast: $32.14B

According to analysts’ forecasts, Microsoft’s earnings will rise by 9%, while revenue will increase by 10.5% y/y. Noticed that during previous quarters, the company tended to beat expectations. Microsoft has a variety of products that generate solid income. Pay special attention to the dynamics of Azure, its cloud computing service – the figures should once again be pretty impressive as the tech giant added new capabilities to its product.

The stock has been trading sideways between $142 and $131 since the end of June. The price consolidated after a long-term uptrend. Currently, it’s in the $137 area, near the middle of the horizontal range. Its edges, mentioned earlier, are the initial targets.

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Tesla

EPS forecast: $-0.45

Revenue forecast: $6.47B

Tesla is expected to show the third unprofitable quarter in a row despite selling a record number of cars. At this point, bad figures will be a surprise to no one, so investors, on the contrary, will look for glimpses of light: a forecast for future profit, a positive free cash flow, evidence that demand remains solid. If the electric vehicle maker doesn’t provide these sources of hope, the negative pressure on the stock will mount.

After the selloff in the first half of the year, Tesla bottomed in June and then managed to stabilize. Most recently, the price met the resistance of the July high ($266). On the upside, there are also obstacles at $268 and $273.6 (50- and 200-period MAs) ahead of $278 (50% Fibo retracement of the 2018-2019 decline). Support lies at $235 and $231 (daily MAs) as well as $225 (support line).

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eBay

EPS forecast: $0.64

Revenue forecast: $2.65B

Analysts have positive expectations about eBay’s financial results. The company’s putting a lot of effort into the technological enhancement of its core e-commerce business. On the downside, the increased investment may hurt earnings. In addition, notice that the competition with Amazon and Wal-Mart is a big challenge for eBay. Investors will also look for the news regarding the potential sale of StubHub or eBay Classifieds, a contentious issue for the company that provoked the departure of its CEO last month.

The stock has been on the rise since the end of 2018. However, at the end of September, the price slipped below $39 – this level tends to be an important border for eBay during the whole year. A return above $39.50 (100- and 50-day MAs) is needed to open the way up to $41 and 42.50 (78.6% Fibo retracement of the 2018 decline). Support is at 37.65 (200-day MA), $36.50 and $35.50.

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Thursday, October 24

Amazon.com

EPS forecast: $4.59

Revenue forecast: $68.82B

According to Wall Street, Amazon’s adjusted earnings will decline by about 20% y/y showing the first decline in nine quarters. The company’s revenue, however, is seen increasing by 22%. During the last few months, Amazon was pressured by lower-than-expected earnings, volatile equity markets, political criticism, and antitrust allegations. In this report, investors will look at the numbers for Amazon Web Services (the company’s cloud segment), the signs that the Prime delivery speed increase is boosting sales growth in North America as well as Amazon’s guidance for the next quarter.

Although Amazon remains one of the best long-term performers among both tech and consumer goods stocks, it is behind other the other so-called FAANG stocks during the past year. In August, the stock violated the uptrend from the end of 2018. The price then started trading below $1,835/50, limited by the 100- and the 50-day MAs. The most recent attempt of the price to get higher ran into an obstacle just below $1,800, near the 200-day MA. All the mentioned levels will act as resistance. Below $1,740 support is at $1,700 and $1,670 (June low).

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Intel

EPS forecast: $1.23

Revenue forecast: $18.02B

During the previous quarter, Intel benefited from rising demand for personal computers and sales of higher-priced server chips. Investors will want to see whether the positive trend continues and what the semiconductor producer projects for the rest of the year. So far, the stock has been resilient enough despite the trade war between the United States and China, an important market for the chipmaker, although the threat of higher tariffs has obviously limited its upside.

The stock of Intel is trading within an ascending triangle. The resistance that has been keeping the price from getting higher lies at $53.20 (61.8% Fibo retracement of the April-May decline). The break above this obstacle will open the way up to $55 and $56 (78.6% Fibo). Support lies at $50 (200-day MA, support line) and $49.20/00. The loss of 48.50 will make the price vulnerable for a decline to $46.75.

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Visa

EPS forecast: $1.43

Revenue forecast: $6.08B

For years, Visa’s stock has been slowly but surely appreciating – a reflection of the fact that digital payment is replacing cash. This tendency has all the chances to continue pushing the price higher, although there may be corrections on the way. This time, Wall Street sees Visa earnings rising by 18% y/y and revenue grows at 12%. Notice that Visa has a tendency to beat forecasts during the earnings releases.

Visa’s long-term uptrend ran in September into the resistance at $187.00. Since then, the price has consolidated around $175.00. The further resistance is at $190 and $200. On the downside, support lies at $169.00 and $163.80 (200-day MA). The fall below $160 will question the uptrend.

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