Sign up USA
Proactive Investors - Run By Investors For Investors

Wedbush repeats 'neutral' stance on eBay ahead of results

The broker expects revenue for the three months of of $2.2bn against consensus of $2.2bn
Wedbush repeats 'neutral' stance on eBay ahead of results
Wedbush said it was remaining on the sidelines on eBay

Broker Wedbush is expecting no great shakes from online auction firm eBAY (NASDAQ:EBAY) when it posts first quarter numbers and rates the shares as 'neutral'.

"We remain on the sidelines pending signs of sustainable growth reacceleration," said analyst Aaron Turner.

Expecting revenue of $2.2bn

The broker expects revenue for the three months of of $2.2bn against consensus of $2.2bn and guidance of between $2.17 and 2.21bn and EPS of $0.48 compared to consensus of $0.48 per share and guidance of $0.46 and 0.48.

It expects the firms' gross merchandise volume (GMV) continues to be bolstered by a strong e-commerce market growth, and reckons site traffic to EBAY continued to decelerate, possibly due to revamped marketing approach, which may limit upside potential.

Wedbush also notes the continued strength of the international e-commerce market, particularly in the UK and a stable macro picture.

Recently, eBay announced it was investing $500mln into Amazon competitor Flipkart as part of a larger $1.4bn funding round.

What of the Indian exit..?

Part of this means selling its own India marketplace to Flipkart and entering into an exclusive arrangement in which eBay merchants outside of India can sell to Flipkart shoppers and Flipkart sellers can more easily sell to eBay shoppers outside of India.

Turner noted: "We believe International remains an important growth opportunity for EBAY, even in light of its recent announcement to exit the Indian market.

"While we understand the rationale behind selling eBay.in to Flipkart, we expect to hear further color around which geographies will receive the managerial focus and capacity previously allocated to eBay.."

The Wedbush price target is $34. Shares are currently up 0.4% to $34.16 each.

View full EBAY profile View Profile

eBay Timeline

Article
January 26 2017

Related Articles

H&T Pawnbrokers store
November 15 2017
“We have delivered a strong trading performance during the second half in the key segments of Pawnbroking, Retail and Personal Loans”
Flying Brands
March 07 2018
Flying Brands has signed a deal for the sale and distribution of its StoneChecker software in South Korea

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use