EBAY Stock Price Analysis: eBay Slips Post Q2 Result, What Next?

• 1 The eBay Inc. (NASDAQ: EBAY) stock price is trading at $43.66 currently with a market capitalization of $23.347 Billion.
• 2 EBAY stock surpassed the Zacks Consensus estimates by 4%.

eBay Inc. (NASDAQ: EBAY) shares fall immensely after 2023 Q2 results. Here’s key details from the Q2 report.

What Happened in Q2?

EBAY stock reported its Q2 results for 2023, showing solid performance across financial metrics. Revenue rose 5% on an as-reported basis and 6% on an FX-Neutral basis to $2.5 Billion. However, Gross Merchandise Volume (GMV) fell 2% on an as-reported basis and 1% on an FX-Neutral basis to $18.2 Billion. 

GAAP net income from continuing operations was $172 Million, or $0.32 per diluted share. Furthermore, Non-GAAP net income from continuing operations was $555 Million, or $1.03 per diluted share. GAAP and Non-GAAP operating margin was 20.4% and 26.9%, respectively.

The company generated $605 Million in operating cash flow and $492 Million in free cash flow from operations. The company also returned $383 Million to shareholders, including $250 Million of share buybacks and $133 Million of cash dividends.

Quarter 3 2023 Outlook

EBAY is providing the following guidance for continuing operations for Q3 2023. The guidance is in Billions, except for per-share data and percentages. For Q3 2023, the company expects.

• Revenue of $2.46 Billion – $2.52 Billion

• Organic FX-Neutral Y/Y Growth of 2% – 4%

• Diluted GAAP EPS of $0.67 – $0.72

• Diluted Non-GAAP EPS of $0.96 – $1.0

EBAY Stock Price Technical Analysis

EBAY Inc. stock price dropped below the 200-day and 50-day moving averages, indicating seller dominance in the market. However, if sellers keep pushing harder, the stock price could decrease more and enter into a downtrend. 

A sudden drop in RSI has been seen. The RSI has dropped below the median line and is heading towards the oversold zone. The RSI line is at around 38.41. The 14 SMA line has a value of 61.72 points which shows that eBay’s price is heading in the zone and is very bullish.

Currently, MACD is giving a bullish zone, but the MACD line crosses the signal line and faces downward. The MACD line (at 0.6847) and the signal line (at 0.8289) are heading towards the zero line.

Conclusion

Technical Levels:

• Support – The current support level is $40.00.

• Resistance –The current resistance level is $49.00.

Disclaimer

The analysis given in this article is for informational and educational use only. Do not use this information as financial, investment, or as trading advice. Investing and trading in stock is a risky task. Please consider your circumstances and risk profile before making any investment decisions.