EBAY stock has been in a steady downtrend, as prices have dropped from the $60/share area in early March until the $49/share mark in June. Price is showing signs of pulling up, possibly until the $50-$51/share levels, which have acted as a broken support zone.
Another potential pullback area is the 50 SMA (simple moving average, which has acted as a dynamic inflection point for the pair. MACD is moving out of the oversold area, indicating that buying pressure could return for this pair in the meantime.
EBAY Stock Outlook
The e-commerce company’s shares have been under heavy selling pressure after news of a security issue popped up. The company has also drawn flak for allegedly favoring certain e-book publishers over others, consequentially leading to some boycotts among authors.
EBAY stock got some support when the company released an official statement recently addressing the security threats. “We have worked hard to mitigate the impact to all eBay sellers and to minimize any inconvenience to eBay customers. Following the recent cyberattack, eBay implemented a new authentication process that requires all users to reset their password. While this one-time step introduced some friction for buyers and sellers and temporarily disrupted our normal marketing activities, we felt this was an important and necessary action to ensure a safe and trusted marketplace,” according to the press statement.
“We have subsequently implemented additional marketing activities, including offering incentives for buyers and sellers in response to any inconvenience created by the password reset. Tens of millions of buyers and sellers have already reset their passwords, and millions continue to actively transact on the site every day.”
Whether consumers are convinced or not remains to be seen, and the impact might be best reflected in EBAY stock performance in the coming weeks.
To contact the reporter of the story: Jonathan Millet at email@example.com