eBay Inc. (NASDAQ:EBAY) Recent Earnings Shows Major Concern

eBay Inc. (NASDAQ:EBAY) Recent Earnings Shows Major Concern


The eBay Inc. (EBAY) shares are trading at lower $54.53 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $55.22.

To add more color to this target, the company’s high over the last year is $61.06 and the low is $26.02. Over the last 52 weeks, EBAY is down -10.69% while the S&P 500 is up 1.23%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, EBAY reported a profit of $1.85 billion. eBay Inc. also saw revenues increase to $2.37 billion. In addition, EBAY has free cash flow of $494.0 million as of 03-2020. The company’s EBITDA came in at $776.0 million which compares well with its peers.

EBAY booked profit margins of 44.40%, its Return on Equity (ROE) is 151.40%, and its Return on Assets is 24.30%. All told, it is clear that, EBAY needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EBAY has a short ratio of 1.42 and outstanding shares of 753.00M.

Company Outlook

EBAY has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 10.39 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.16. eBay Inc. EBAY also noted assets of $18.93 billion at the end of the last quarter. Investors should also keep an eye on sector updates as EBAY has historically followed its peers on positive news.

All told, eBay Inc. EBAY has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EBAY represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

eBay Inc. EBAY is now commanding a market cap of 38.34B and a float of 667.15M. EBAY is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EBAY stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in EBAY, either long or short, and we have not been compensated for this article.