Stock on Focus: eBay Inc. (EBAY)

Company Profile:

eBay Inc. (eBay) is a commerce company, which operates through its Marketplace, StubHub and Classifieds platforms. The Company helps in enabling commerce on its platforms for buyers and sellers online. The Company has an open source platform that provides software developers and merchants an access to its application programming interfaces for developing software and solutions for commerce. Its Marketplace platforms include its online marketplace located at www.ebay.com, localized counterparts and the eBay mobile applications. Its StubHub platforms include its online ticket platform located at www.stubhub.com and the StubHub mobile applications. Its StubHub platforms provide customers with a place to purchase tickets to the games, concerts and theater shows and also enable owners to sell the tickets. Its Classifieds platforms offer online classifieds with a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Classifieds and others. eBay Inc. was founded in 1995 and is headquartered in San Jose, California.

Recent News:

On Nov. 02, 2016, eBay Inc. (EBAY) announced that it received notice of an unsolicited “mini-tender” offer by TRC Capital Corporation (TRC) to purchase up to 4,000,000 shares of eBay’s common stock at a price of $27.35 per share in cash. The offering price is 4.37% below the closing price per share of eBay’s common stock on October 28, 2016, the last trading day before the offer was commenced.

The company reported that revenue for the quarter ended September 30, 2016 was $2.2 billion, up 8% on an FX-Neutral basis and 6% on an as-reported basis. GAAP net income from continuing operations was $418 million, or $0.36 per diluted share, and non-GAAP net income from continuing operations was $509 million, or $0.45 per diluted share.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EBAY’s strengths can be seen in its strong growth and robust profitability. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and RSI stands at 46.18 with positive bias. We rate eBay Inc. (EBAY) a BUY.