eBay – Earnings Time


Hi. It’s Rachael here with UFX to talk to
you about a price volatility event for eBay stock. eBay is an online marketplace where you’ve
probably bargain hunted. Market analysts say eBay shares are a bargain too, predicting
7% price gains over the next year. If eBay changes its “no alcohol” sales
policy, to target a share in the $300B global wine market, could you bank that unlocked
potential? 167 million people buy and sell there, with
eBay earning through advert posting fees and sales commissions. PayPal transaction fees
helped too… But then this happened: In July 2015, eBay spun off its payment transaction
business “PayPal.” eBay’s share price more than halved. Since then, eBay shares have regained 20%. Will Wednesday’s Quarter 1 earnings report
release, grow or kill investor confidence, and impact eBay’s share price? In February, eBay partnered with WineDirect,
making 1,000 wine types available to buyers. In March, the site banned competitor adverts
from linking off the eBay site. Both changes may have boosted Q1 commissions. However,
eBay did badly in Piper Jaffray’s survey, on “where teens want to spend their money.”
That could reduce eBay’s growth projections. In 2016’s Q1 earnings, eBay beat targets.
In Q2 last year, eBay met targets. Q3 results showed eBay’s operating margins were down,
and Q4’s earnings report release showed bumper holiday sales helped eBay to record
earnings. The 5% spike in share price by closing bell
the day after eBay’s Q4 earnings report release yielded a 100% return on investment
for UFX traders “buying” on our leveraged eBay CFD product.
You decide. Is now the time to hit buy or sell on eBay?
Thanks for being a UFX investor.

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