eBay Stock Gets To New Highs After Q2 Earnings Report
Shares of eBay moved to all-time high levels soon after the company released its second-quarter results. eBay reported revenue of $2.7 billion and adjusted earnings of $0.99 per share, missing analyst estimates on revenue and beating them on earnings.
According to the report, annual active buyers declined by 2% to 159 million while annual active sellers increased by 5% to 19 million. The report was a bit noisy as eBay Korea business was reported as discontinued operations, and it looks that the initial reaction to the earnings report was muted due to the headline revenue miss.
In the third quarter, eBay expects to report revenue of $2.42 billion – $2.47 billion, while adjusted earnings are projected to total $0.86 – $0.90 per share.
What’s Next For eBay Stock?
Analysts expect that eBay will report earnings of $3.95 per share in 2021 and $4.46 per share in 2022, so the stock is trading at a forward P/E of about 17, which is cheap for the current market environment.
The company’s second-quarter report indicated that the number of active buyers declined as economies reopened. However, the world is worried about the spread of the Delta variant of coronavirus, and some countries have already decided to re-introduce strict virus containment measures.
It remains to be seen whether new problems on the virus front will provide additional support to eBay in the third quarter, but it looks that traders are ready to bet that the company’s performance will remain solid in the second half of this year.
S&P 500 is trading near all-time high levels, and many growth stocks are very expensive. In this light, eBay stock has good chances to attract enough interested buyers who search for attractively valued companies. There is more room for multiple expansion, and the stock has a decent opportunity to continue its upside move in the upcoming weeks.
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This article was originally posted on FX Empire