eBay steady ahead of earnings

eBay has been trading in a tight range since the start of 2014, as investors await fourth-quarter results on Wednesday.

eBay is trading at 5330 cents, broadly unchanged since it announced third-quarter results in mid-October.

The most recent update from the online auction house revealed a 15% increase in profits from the same period one year ago, which missed analysts’ expectations. In the same announcement eBay predicted it would post earnings per share (EPS) in the fourth quarter between 79 and 81 cents, and revenue in a range of $4.5 to $4.6 billion. This forward guidance was below the market consensus of 83 cents in EPS and revenue of $4.64 billion.

The lower-than-expected forward guidance weighed on the share price but, now that investors are anticipating softer results, it may be easier for eBay to exceed the lowered estimates.

eBay will report its fourth-quarter earnings on Wednesday after the closing bell at 9pm (London time). IG now offers eBay ‘All sessions’, which allows clients to trade the stock outside the exchange hours.

The share price is above the 200 moving average which is a positive sign. If the stocks reaches 5470 we could see it head towards the July high of 5750.

eBay chart

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