Schaeffer's Top Stock Picks for '25

Analysts Trash EBAY Stock After Weak Holiday Forecast

More than a dozen analysts have already issued price-target cuts

Digital Content Manager
Oct 24, 2019 at 10:09 AM
facebook X logo linkedin


The shares of eBay Inc (NASDAQ:EBAY) are eyeing four-month lows today, following a sub-par earnings report. While its reported earnings per share of 67 cents and $2.65 billion in revenue beat analyst estimates, the e-tailer predicted weaker-than-expected revenue for the holiday quarter.

The forecast has analysts swarming the stock. So far, more than a dozen in coverage have slashed their target prices, with Mizuho cutting its estimate all the way to $33 from $36. Plus, Raymond James came in with a downgrade to "market perform" from "outperform," and RBC noted that it sees negative trends for the company's fundamentals.

Should this negative price action continue, even more downgrades could be on the horizon. Prior to today, 10 of the 26 in coverage called EBAY a "buy" or better, with not a single "sell" to be seen. Plus, the consensus 12-month target price of $40.98 is at a solid 14.3% premium to current levels. 

On the charts, EBAY has sliced straight through recent support at its 180- and 200-day moving averages, down 8% at $36, and is pacing for its biggest one-day drop in over a year. Prior to today, the equity was attempting to rebound off its early October four-month lows, but ran up against pressure at its 40-day moving average. Despite this massive drop, the stock is still floating north of its year-to-date breakeven, with a nearly 25% gain. 

Options bears are likely cheering today's tumble. We just covered these traders' penchant penchant for put buying, with 1.57 puts bought for every call on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) during the last 10 days -- a ratio that sits higher than 90% of all other readings from this past year.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));