eBay (EBAY, $74.02) beats Q2 earnings estimates; misses revenue forecasts
eBay posted its second quarter earnings that surpassed analysts' expectations, even as revenue missed estimates.
The e-commerce company’s earnings came in at 99 cents a share, compared to the 96 cents expected by analysts polled by Investing.com.
Revenue of $2.67 billion fell short of analysts expectation of $3 billion. Gross merchandise volume was $22.1 billion in the quarter, down -7% on an as-reported basis and down -11% on an FX-Neutral basis.
For the third quarter, the company projects earnings per share in the range of 86 cents to 90 cents on revenue of $2.42 billion to $2.47 billion, compared with analysts’ forecasts of 92 cents a share on revenue of $2.89 billion.
The company announced an additional $3 billion of share buyback program, following purchase of $1.5 billion of its shares during the second quarter.
EBAY sees MACD Histogram just turned negative
EBAY saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 05, 2022. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In 27 of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 63%.
Current price $46.65 crossed the resistance line at $55.18 and is trading between $55.18 resistance and $45.61 support lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -14% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -4%.
The Momentum Indicator moved below the 0 level on April 22, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on EBAY as a result. In 49 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 58%.
The 10-day Moving Average for EBAY crossed bearishly below the 50-day moving average on April 12, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 59%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EBAY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
The Aroon Indicator for EBAY entered a downward trend on May 13, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where EBAY's RSI Oscillator exited the oversold zone, 22 of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where EBAY advanced for three days, in 222 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
EBAY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 64%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. EBAY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 53 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock slightly better than average.
The Tickeron Valuation Rating of 33 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.702) is normal, around the industry mean (19.948). P/E Ratio (126.582) is within average values for comparable stocks, (97.611). Projected Growth (PEG Ratio) (2.446) is also within normal values, averaging (3.022). Dividend Yield (0.016) settles around the average of (0.024) among similar stocks. P/S Ratio (2.893) is also within normal values, averaging (71.438).
The Tickeron SMR rating for this company is 23 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.
The average market capitalization across the Internet Retail Industry is 21B. The market cap for tickers in the group ranges from 30 to 1.2T. AMZN holds the highest valuation in this group at 1.2T. The lowest valued company is YUKA at 30.
The average weekly price growth across all stocks in the Internet Retail Industry was -0.64%. For the same Industry, the average monthly price growth was -6.33%, and the average quarterly price growth was -26.79%. AHAHF experienced the highest price growth at 256.87%, while BHHOF experienced the biggest fall at -48.01%.
- 4/6/22 8:51 AM: eBay (EBAY, $56.4) was a top loser this week, declining -6.33%
- 3/29/22 5:17 AM: eBay (EBAY, $58.78) was a top weekly gainer, with a +6.25% jump
- 3/18/22 7:14 AM: eBay (EBAY, $55.67) was a top weekly gainer, with a +6.32% jump
The average weekly volume growth across all stocks in the Internet Retail Industry was 13.94%. For the same stocks of the Industry, the average monthly volume growth was 50.08% and the average quarterly volume growth was 5.71%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 41%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.33.
40 stocks in the group of tickers exhibit a similar negative trend based on the MACD indicator with an average likelihood of 75%.
The most notable companies in this group are Booking Holdings (NASDAQ:BKNG), eBay (NASDAQ:EBAY), Expedia Group (NASDAQ:EXPE), Trip.com Group Limited (NASDAQ:TCOM), Peloton Interactive (NASDAQ:PTON), WW International (NASDAQ:WW).
The average market capitalization across the group is 4.3B. The market cap for tickers in the group ranges from 0 to 85.4B. BKNG holds the highest valuation in this group at 85.4B. The lowest valued company is HXPR at 0.
The average weekly price growth across all stocks in the group was 25.15%. For the same group, the average monthly price growth was -9.07%, and the average quarterly price growth was -13.91%. CDJM experienced the highest price growth at 2686.89%, while FBGI experienced the biggest fall at -55.52%.
- 5/14/22 4:23 AM: PLBY Group (PLBY, $8.94) was a top weekly gainer, with a +5.05% jump
- 5/14/22 4:23 AM: TripAdvisor (TRIP, $24.77) was a top weekly gainer, with a +8.31% jump
- 5/14/22 4:23 AM: cbdMD (YCBD, $0.83) is a top weekly gainer for penny stocks, rising +20.7%
The average weekly volume growth across all stocks in the group was 780.06%. For the same stocks of the group, the average monthly volume growth was 842.65% and the average quarterly volume growth was 296.72%
- 5/7/22 5:22 AM: The volume for American International Holdings stock increased for two consecutive days, resulting in a record-breaking daily growth of 323% of the 65-Day Volume Moving Average
- 5/6/22 5:00 AM: The volume for American International Holdings stock increased for one day, resulting in a record-breaking daily growth of 394% of the 65-Day Volume Moving Average
- 5/4/22 8:20 AM: The volume for American International Holdings stock increased for one day, resulting in a record-breaking daily growth of 262% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows