eBay’s stock price rose by 5% on Wednesday, after the company posted earnings that beat Wall Street expectations.
eBay (NASDAQ: EBAY) has begun a new market cycle, and we believe it has plenty more room to run.
The company reported earnings per share of $0.67 and total revenue of $2.64 billion, compared to analyst estimates of $0.63 and $2.58 billion. For the coming quarter, eBay management expects earnings to be between $0.61-0.63 compared to estimates of $0.60.
CEO Devin Wenig explained that, “Our initiatives to create a next generation payment and advertising experience are on track, we saw healthy buyer growth and disciplined cost control, and we continue to simplify the buying process while remaining focused on seller’s success.”
In reviewing the market cycles for EBAY, we can see that the stock has now begun the rising phase of its current cycle. In fact, this is a perfect picture of cycle analysis, as the bottom came right on time, as have all previous cycle bottoms.
Our projection is for EBAY to hit $46 in the next couple of months.
Ebay (EBAY) Stock Weekly Chart
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