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EBAY

eBay | Fundamental Analysis | MUST READ...Shares of eBay plummeted immediately after the release of its third-quarter financial results on Oct. 27, despite strong revenue and earnings numbers. Weak earnings forecasts came into focus as the ongoing store relaunch negated a temporary boost in online sales during the pandemic. However, during the peak of the COVID-19 crisis, new management made changes that could improve eBay's long-term prospects. The question for investors is whether the latest numbers indicate continued stagnation or offer a path to further growth in the online marketplace. Admittedly, the quarter showed a mixed picture. Gross Merchandise Volume (GMV) fell 10% year-over-year to $19.5 billion as sales activity declined from an unusually high level in 2020. Nevertheless, eBay now retains a larger percentage of that transaction volume as revenue, up 11% to $2.5 billion. Unfortunately, that growth wasn't enough to boost earnings: earnings per share fell 50% year-over-year to $0.43. Adjusted earnings, which exclude the effect of fair market value adjustments on Adevinta's business, rose 9% to $0.90 per share. Free cash flow also declined slightly, by 4% to $502 million for the quarter. For the current period, the company's management forecasts revenue growth of between 3% and 5%. That slowdown sent the stock down 9% on the day earnings were released, but the stock has since largely recovered. In the year to date, eBay stock is up more than 50%. A key factor for investors to consider is the change in direction of the company under CEO Jamie Iannone. Previously the head of eBay, Iannone returned to the company after leading e-commerce sales at Walmart. When he took the job in April 2020, revenues were growing at a rapid pace as closed stores encouraged consumers to shop online. Now that sales are slowing as the economy returns to normal, the new environment puts Iannone's vision to the test. Nevertheless, Iannone has made significant changes over the past 18 months to revitalize the e-commerce company and confront serious challenges from Amazon, growing e-commerce players such as Etsy, and other platforms such as Facebook Marketplace. Under Iannone's leadership, eBay has reduced the number of steps required to list items on the site by introducing a new listing tool to simplify the process. The company also enabled eBay's mobile storefronts and QR coding to speed up the process of getting an item. In addition, the company has added a managed payments system, which should allow sellers and customers to use digital wallets. eBay is also targeting higher-end buyers. Thanks to these changes, the number of active buyers on the site is down 5 percent year-over-year to 154 million. But more than half of that user base is what the company calls "low-value shoppers," a group that makes up just 5 percent of total sales. According to Iannone during the third-quarter reporting conference, the number of high-value shoppers is up 6 percent since 2019 amid an overall decline in the number of shoppers. One way to attract these important customers is to launch Promoted Listings Advanced Beta. It builds on the existing Promoted Listings platform, which allows highly ranked sellers to bid on the top slot in a given search. Promoted Listings revenue is up 9% year over year, and moves like this should attract the type of sellers that will eventually provide higher GMV and revenue. With the worst effects of the pandemic behind it, the company is embarking on important changes that should make it more competitive in the long run. An improved user experience and more engaged buyers, among other efforts, are encouraging signs of what a reborn eBay could look like. The market appears to be impressed by these changes, as eBay stock is up 45% this year. Management is confident enough about its prospects to increase its stock repurchase plan for this year from $2 billion to $5 billion. Experienced investors should pay attention and put eBay on their list of stocks to watch.
NASDAQ:EBAYLong
by FOREXN1
3
EBAY: FUNDAMENTAL ANALYSIS + NEXT PRICE TARGET In 2021, the e-commerce and auction company, eBay, is certainly feeling great. The company attracted a record number of customers at the beginning of the pandemic as people tended to avoid shopping in stores. eBay is using this momentum to optimize business performance. Management expects that many of the customers who signed up during the pandemic won't stick around for long, so it's focusing on retaining high-value customers. This is one of several things investors should know about eBay as the company's stock rises rapidly. At the beginning of the pandemic in the second quarter of 2020, eBay attracted seven million active buyers, the highest in the company's history. eBay continued to attract shoppers over the next year, but that trend reversed in the last quarter. The economic recovery has forced consumers to spend more time away from home. Not surprisingly, fewer buyers turned to eBay, and as a result, the company lost seven million active buyers in the first and second quarters of 2021. Still, the number of active shoppers is 159 million, up 3 percent from the same quarter in 2019. What's more, eBay has made some changes to its promotional activities, targeting more valuable customers, so while the overall number of shoppers is down, the quality of shoppers has improved. Here's what the company's executives had to say about that during its latest earnings call: "In parallel, we have abandoned outdated tactics that led to low-value, infrequent or one-time buyers. Our customer base is beginning to evolve based on this strategy. Compared to last year, the number of these buyers is increasing, and their spending on eBay is increasing even faster. This higher-quality mix of buyers adds value for sellers and will lead to a better state of our ecosystem in the long run." Indeed, while eBay lost the total number of active buyers for the quarter and for the year, it gained high-level buyers who also increased their spending over the period. These VIP shoppers make up 20% of eBay's total number of buyers, but they account for 75% of the total value of purchases. This is in stark contrast to the low-value buyers, who make up half of the total number of buyers but provide only 5% of gross merchandise volume. This new focus will be crucial for the company as it earns revenue through a percentage (take rate) of the total volume of transactions on its platform. eBay has also moved its buyers and sellers to its own payment system. This transition helps streamline the sales process and reduce delays when buyers make a purchase and pay. The combination of lower promotional activity and payment system migration increased eBay's transaction acceptance rate to 11.3 percent in the second quarter, up from 9.2 percent a year ago. These latest changes may improve eBay's long-term profitability, boosting already excellent operating margins over the past decade. The market appears to be impressed by these changes, as eBay stock is up 45% this year. Management is confident enough about its prospects to increase its stock repurchase plan for this year from $2 billion to $5 billion. Experienced investors should pay attention and put eBay on their list of stocks to watch. Check the Links on BIO and If you LIKE this analysis, Please support our Idea by hitting the LIKE 👍 button Traders, if you like this idea or have your own opinion about it, please write your own in the comment box . We will be glad for this. Feel free to request any pair/instrument analysis or ask any questions in the comment section below. Have a Good Day Trading !
NASDAQ:EBAYLong
by FOREXN1
8
EBAY: FUNDAMENTAL ANALYSIS+PRICE ACTION & NEXT TARGET|LONG🔔Since the end of March 2020, eBay's stock price has risen 146%. Due to the unfortunate COVID-19 situation, many people have been forced to turn to reliable online sources to buy goods, and the e-commerce marketplace eBay has received a huge boost from this wave of traffic. Revenue growth accelerated from a 2% year-over-year decline in the first quarter of 2020 to 42% in the first quarter of 2021. So far, investors have boosted the company's stock price by 47% in 2021, compared to the 13.6% return of the broader market as measured by the Nasdaq Composite Index. Should you still think about investing in eBay at current levels? Valuation is always important when assessing the potential growth of a stock. eBay is trading at 19 times the consensus earnings forecast for 2021, which is below the average S&P 500 earnings forecast of 22. The stock could be slightly undervalued, relying on how much eBay will evolve over the long term. Nevertheless, eBay has faced tougher year-over-year growth comparisons this year. In Q2, revenue grew 11% in currency-neutral terms, down 42% in the first quarter and 30% in the year-ago quarter. In the third quarter, management anticipates revenue to increase 6% to 8% on a currency-neutral basis compared to last year's quarter. The stock price is up 7.1% since the Aug. 11 earnings report, but given the slowdown, it's hard to say whether the stock will continue to rise in the near term. However, eBay could accelerate earnings growth again in 2022, based on management's strategy to improve the trading platform business. CEO Jamie Iannone took over in April 2020 and brings with him extensive experience as a chief operating officer of Walmart's e-commerce division. eBay faces growing pressure from new competitors such as Etsy, which posted triple-digit revenue growth in 2020 and added 35.5 million new active buyers. That's more than three times eBay's growth of 11 million active buyers in 2020. In recent quarters, eBay has reported strong results in new categories, including authentic sneakers, trading cards, and high-end watches. Trading cards, for example, brought in $2 billion in gross merchandise volume (GMV) in the first half of the year, and Iannone sees "untapped potential" for further growth in this category. Still, $2 billion GMV isn't much compared to eBay's total GMV of $22 billion in the last quarter, but there's more to the strategy than the category's recent expansion. The point is to provide more in-demand things that attract young people, particularly Generation Z and Millennials who like to shop frequently. Before Iannone joined the company, eBay was concentrated on increasing the overall number of active shoppers without paying attention to the quality of its customers in terms of how engaged they were or how much they spent. As a result, growth in the number of active shoppers slowed to just 1% right before the pandemic in Q1 2020. In essence, Iannone wants to reduce reliance on what he calls "one-time shoppers" and focus on attracting "lifelong enthusiasts" to the marketplace to drive higher growth, which is already yielding good results. For example, eBay has found that a Generation Z shopper will buy $500 sneakers, but then spend another $2,000 on other categories of merchandise. Iannone explained this during eBay's second-quarter earnings call: "We're seeing in watches, where a high-end watch buyer spends $8,000 in non-watch categories, and that's over 50 items, and that's one of eBay's advantages - the cross-category nature of shopping, which is very difficult for other competitors to replicate." Although eBay's number of active buyers fell by 7 million sequentially to 159 million this quarter, that's still a broad customer reach that reflects the wide variety of products eBay offers as the company seeks to attract higher-value buyers. "Compared to last year, the number of these buyers is increasing, and their spending on eBay is increasing even faster," Iannone said. "This better mix of buyers adds value for sellers and will lead to a better state of our ecosystem in the long run." If eBay can attract more high-volume buyers to the marketplace, it will attract more sellers. That, in turn, will lead to more product selection, which will also help attract more buyers and create a growth flywheel. Iannone has breathed new life into eBay, which, in our opinion, makes this stock worth watching even after rising over the past year. There are faster-growing online retail stocks, but eBay is not going away. The company generates a healthy level of free cash flow, which it returns to shareholders through stock repurchases and dividend payments. Over the past year, eBay's free cash flow was $2.9 billion, a high margin of 29 percent compared to total revenue of $10 billion. It's not too late to invest in eBay. If management continues to be successful in attracting young buyers, the stock could generate above-market returns.
NASDAQ:EBAYLong
by FOREXN1
4
BTC - Moving up - EBAY is your signal!Whether it was a falling wedge or pennant, BTC has broken what I see as resistance, got above a key fib, broken up on the RSI and momentum is shifting in the bulls favour. MACRO Driver: re: Ebay This week I met with both a Director at a major global automotive company and a Director at a domestic tech retailer. Both sighted demand has dropped slightly but the major problem is the production and shipping product to meet demand - Chip manufacturing was hit in March (fire damage of machinery) disrupting the global supply chain. While production is back up to peak, the market is 6 months in arrears. This feels like a common story for many sectors from lumber shortages to higher feeds prices for cattle - compounded by labour shortages in many western countries. Great news for the second-hand market but not so great for the market as a whole. This puts further upward pressure on prices which is passed onto the consumer. This suggests Inflation is here to stay for next year. Positive for Equity and Commodities and emerging markets and with 'risk-on' attitude in the markets this should have a positive effect on Bitcoin. - Just an opinion but go look at EBAY share price - parabolic right now Now long - just touched the 50 DMA but expecting it to push through - I'd ideally like to see a retest and resumption off support but then on to go challenge the $40k mark. Best, Hard Forky
COINBASE:BTCUSDLong
by hardforky
4
Weekly Outlook! 7/12 - 7/16Here is what stocks we are looking at for the coming week! As well as a recap of last week's video! NYSE:CAT Looking for another swing high off of lows. Looking to get a confirmation for the break of it's current bullflag pattern over the $220 level. NASDAQ:NVDA NVDA has been range bound the last two days between $806 and $788. We will be looking for a range break in either direction of those levels NASDAQ:ROKU Nice dip here after the recent run we have seen. Looks like we got a break of resistance and will look to catch the next move higher over the $434 level NYSE:YUM Nice trend resistance break on Friday, looking to catch a move over a break of $119 for continuation NASDAQ:EBAY Nice bullflag pattern forming here at highs, will look to take the next move up after a break of the $70 level
NYSE:CATLong
by ThirtyninethParallelInvestment
Wayfair Long to End the Wild WeekW appears to be at low risk areas for a possible long as it finds itself at the lower range of a bullish ascending triangle pattern. We of course want to play the breakout of this but in the meantime if the green trendline continues to hold, longs in this area could make for a good trade before the top of the triangle gets tested. So far it is still holding. The open of the new trading week on Monday will be telling. Keep an eye on the weekly of this to see if the opening candle of Wayfair next week opens above or below the trendline. But as of now a long is not a bad idea with a stop loss at 299.16.
NYSE:WLong
by TradeVibez
Ebay Uptrend (Exit and Entry)Ebay has generally been trending upwards for the last 10 years and is currently trading at a low Price/Earnings ratio of 15. The 50 and 100 Moving Averages should offer support in the short term. The Fibonacci Extensions at the top represent possible resistance points where profit taking may occur. The Fibonacci Retracement drawn at the bottom represented ideal entry points into a long position. The current price level, though not an ideal entry point, still remains attractive.
NASDAQ:EBAYLong
by jacektrocinski