Wed. Oct 27th, 2021

EBay Highlights

The results of Internet retailer eBay, based in California, were unveiled yesterday.

Over the past week, Ebay’s stock price has come under strong pressure, falling more than 11% since the launch of Amazon’s disappointing results on July 29, which had a negative effect. negative in other e-commerce actions.

In April, eBay warned that it expected a slowdown in its business as vaccination programs progressed, businesses reopened and social restrictions ended.

Analysts had reason to pay attention to the company’s results after the consolidation process the company is going through, focusing on its core business and detaching itself from other business initiatives such as:

  • The sale of StubHub, a secondary market for sports, music and live event tickets, for more than $ 4 billion in 2019.
  • The sale of most of its operations in South Korea for about 3 billion dollars.

The strategy used by eBay CEO Jamie Iannone to curb declining revenue has been to try to increase revenue generation through advertising and online payment commissions.

The end result this quarter has been a bit paradoxical.

Despite revenue of $ 2.678 billion, 10% less than expected, thanks to reduced costs, earnings per share (EPS) increased to $ 0.99 from $ 0.96. analysts.

EBay MetaTrader 5 Daily ChartSource: Admirals MetaTrader 5, EBAY Daily – Data range: March 10, 2020 to August 12, 2021, held August 12, 2021 at 10:00 am CET. Past performance is not a reliable indicator of future results.

The chart above shows the evolution of eBay’s stock price since March 10, 2020 on a daily basis.

The chart shows how, since mid-November 2020, Ebay’s stock price has moved to a bullish side within a bullish channel about $ 14 wide.

Traders have respected this figure, using the RSI indicator to make a profit and, in the upward cycles, using the exponential moving average of ten periods (orange) to re-enter the market.

In recent days, the price of Ebay shares touched the resistance of this bullish channel and the RSI indicator entered the overbought zone, which traders interpreted as signals to collect profits and return to enter the market at the exponential moving average of 100 periods (red).

It would be interesting to see the behavior of the market during the first hours of trading today, as there could be strong fluctuations in the stock price of eBay. The improvement in EPS could be used as a price increase in a market that had already discounted falling revenues, causing stocks to rise backwards towards channel resistance.

With the Admirals Invest.MT5 account, you can change eBay and many more stocks. Click on the following banner to open an account today:

Invest with admirals

INFORMATION ON ANALYTICAL MATERIALS:

The data provided provides additional information about all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other valuations or similar information (hereinafter “Analysis”) published on the websites of the Admiral Markets investment companies operating under the trademark Admiral Markets (hereinafter “Admiral Markets”) Before making investment decisions, pay close attention to the following:

  1. This is a marketing communication. The content is published for informational purposes only and may not be construed in any way as investment advice or recommendation. It has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition to deal with prior to the dissemination of investment research.
  2. Any investment decision is made solely by each client, while Admiral Markets will not be liable for any loss or damage arising from such a decision, regardless of content.
  3. In order to protect the interests of our customers and the objectivity of the analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
  4. The analysis is prepared by an independent analyst Javier Olivan, an independent collaborator (hereinafter, “author”) based on personal estimates.
  5. While every effort is made to ensure that all sources of content are reliable and that all information is presented, as far as possible, in an understandable, timely, accurate and complete manner, Admiral Markets does not guarantee accuracy or integrity. of any information contained in the analysis.
  6. Any past or modeled performance of financial instruments indicated in the content should not be construed as a promise, guarantee or express or implied involvement of Admiral Markets for any future performance. The value of the financial instrument may increase and decrease and the preservation of the value of the asset is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or gains. Before you start operating, make sure you fully understand the risks involved.

Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.

Source link

Leave a Reply