Why eBay (EBAY) Stock Is Trading Lower Today
Stock Story
Published May 02, 2024 12:58PM ET
Updated May 02, 2024 01:32PM ET
Why eBay (EBAY) Stock Is Trading Lower Today
What Happened: Shares of online marketplace eBay (NASDAQ:EBAY) fell 9.5% in the pre-market session after the company reported first quarter results. However, revenue growth was quite weak. Notably, revenue in the US fell below expectations, partly driven by unfavourable weather conditions. Adding to the bad news is the fact that both the company's revenue and EPS guidance for next quarter missed analysts' expectations. The company called out a challenging macro environment with FX volatility remaining a headwind.
On the other hand, the results were fine, with revenue and EPS exceeding expectations. Overall, it was a challenging quarter for eBay.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy eBay? Find out by reading the original article on StockStory, it's free.
What is the market telling us: eBay's shares are somewhat volatile and over the last year have had 3 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
eBay is up 13.4% since the beginning of the year, and at $49.74 per share it is trading close to its 52-week high of $52.78 from March 2024. Investors who bought $1,000 worth of eBay's shares 5 years ago would now be looking at an investment worth $1,323.
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Written By: Stock Story
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