Q2 STOCKS TO BUY

eBay Taps Into NFT Market with New Acquisition

Year-to-date, the security is down more than 36%

Digital Content Manager
Jun 22, 2022 at 10:21 AM
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The shares of eBay Inc (NASDAQ:EBAY) are in the spotlight this morning, following news the e-commerce name acquired leading non-fungible token (NFT) marketplace KnownOrigin. Details surrounding the acquisition were not disclosed, but both parties have reportedly signed and closed the deal. At last check, EBAY was up 0.6% to trade at $42.53. 

The last time we checked on eBay, the security was struggling due to an influx of post-earnings bear notes. Analysts have remained pessimistic towards EBAY, with 14 of the 20 in coverage calling it a tepid "hold" or worse, while the remaining six carry a "buy" or better rating.

It's not hard to see why the brokerage bunch in pessimistic. The equity is fresh off a June 16, two-year low of $40.52, while a new ceiling appears to be forming at the $44 level. The shares have also struggled with overhead pressure at the 40-day moving average since early April, culminating in the stock's hefty 36.9% year-to-date deficit.

That bearish sentiment is prevalent in the options pits as well. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY sports a 10-day put/call volume ratio of 4.76 that stands higher than all readings from the last year. This means puts are getting picked up at a much quicker-than-usual clip.  

 

 

 
 

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