Target 94.87 ( 1 to 12 months )Good Up Trend going on. fundamental and Technical is good, So Target is 94.87 Duraion 1 to 12 months .........
EBA trade ideas
EBay Is Trying to Break Out EBay surged to new highs in mid-August, fueled by optimism about a business turnaround. Now after a pullback, it could be on the verge of a breakout.
Two significant patterns appear on the e-commerce stock’s chart. First, the descending trendline starting on August 30. EBAY tested that resistance the last two weeks and is now challenging it again.
Next you have the rising 50-day simple moving average (SMA) providing support from below. Additionally, notice the candlestick action after that line was tested: a kicker September 14-15, and a hammer on September 20. Both of those bounces occurred around $70.77, near the old high from early July.
Finally, the 8-day exponential moving average (EMA) is trying to cross above the 21-day EMA. That could suggest the shorter-term trend is turning bullish again.
Valuations could be another consideration because EBAY trades for less than 17x forward earnings. That’s lower than most peers on the Nasdaq. It may leave room for multiple expansion if management successfully executes its plan to focus more on high-value customers.
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Ascending WedgeWith a saturated e-commerce market EBAY has been trying to stand out by getting into the NFT space. This looks innovative to some but personally it looks like they are reaching. With a lot of negative reviews about their customer service, the NFT market looks more dangerous to the customer than advantageous.
An ascending wedge forming on the weekly time frame with bearish divergence on the macd and rsi and a head and shoulders pattern on the hourly Im very bearish on this play.
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 $5 billion. Experienced investors should pay attention and put eBay on their list of stocks to watch.
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$EBAY Analysis & Key Levels$EBAY Analysis & Key Levels
Whenever this gets about 17-20% away from the 180EMA I start to get pretty bearish!!!
I am not your financial advisor, but I will happily answer questions to the best of my ability but ultimately the risk is on you.
Red = Key levels
Green = resistance
Blue = trendlines
Have fun, y’all!!
$EBAY: Tapering proof? With Jackson Hole this week looking to create rotation in certain names, I believe you may be able to look beyond it to mid caps like EBAY who have been showing a tremendous amount of relative strength recently against the broader indices and I wonder if there's a lot more left in the tank. After ETSY's earnings went off in a strong way, we'll see if names like this have even more life post-COVID
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.
$EBAY a BuyTechnical:
- Fib retracement (not shown) shows a good entry point.
- Support held last quarter (dashed line), though it broke before recent earnings only to come back again.
- Fib extensions (shown on graph) are good exit points though this this a long term hold because of growth potential and dividends.
Fundamentals
- EPS growing exponentially since 2005.
- PE Ratio under 4 for a tech company is very low.
Sunday Prep 8/14 - $EBAYCrazy strong day on Friday with superb volume behind the move. Would love to see a weak open and a retrace to some key levels for early scoops come Monday. Can clearly see the 72.47 monthly pivot right there and if you look at the intra day price action from Friday you can see that level held multiple times. If that level can’t hold, the 61.8% fib level is going to put us down there in that 70 pocket which I also like. One thing I like to point out is where this move stemmed from; the weekly 20sma.
