EBAY stock has been on a strong downtrend since March this year but price appears to have bottomed out at the $49/share level. Price has pulled up since then and is encountering a bit of resistance at the 50 simple moving average.
MACD is still moving higher, indicating that buyers might be ready to push the pair up north, possibly until the longer-term 200 SMA, which might hold as resistance once again. Take note that the 50 SMA has recently crossed below the 200 SMA, reflecting a downtrend for the pair.
EBAY Stock Forecast
Ebay has reported profits for the second quarter of the year during the earnings release this week, despite the security breach on its site a few months back. Earnings stood at $676 million, 6% higher compared to the previous year. Revenue is up by 13%, slightly higher than analysts’ projections.
With that, EBAY stock could be in for more gains in the next few months, as investors renew demand for the company’s shares amidst several challenges that took place. A climb up to the 200 SMA resistance or the $53/share level might be in the cards.
Further gains could take EBAY stock price up to the $56/share area should positive prospects remain for the online marketplace. The company CEO noted that the security breach in May resulted to a significant slowdown for the following months, weighing on sales and revenue for most of the second quarter. It didn’t help that the US economy also seemed to undergo a slowdown in overall spending then.
Despite that, the company emerged with a relatively strong earnings report, to the benefit of EBAY stock prices. Ebay sees further growth in the sales through mobile devices as it has tied up with PayPal for online and mobile payments.
To contact the reporter of the story: Jonathan Millet at email@example.com