Online marketplace eBay (NASDAQ: EBAY) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.
eBay beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $2.59 billion, up 1.1% year on year. It was a slower quarter for the company, with revenue guidance for next quarter slightly missing analysts’ expectations and number of active buyers in line with analysts’ estimates. It reported 134 million active buyers, up 1.5% year on year.
Is eBay a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting eBay’s revenue to grow 2.8% year on year to $2.65 billion, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. eBay has missed Wall Street’s revenue estimates three times over the last two years.
Looking at eBay’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 2.6%, and Coursera reported revenues up 9.8%, topping estimates by 3.7%. Alphabet’s stock price was unchanged after the resultswhile Coursera was up 36.2%.
Read our full analysis of Alphabet’s results here and Coursera’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.7% on average over the last month. eBay is up 7.5% during the same time and is heading into earnings with an average analyst price target of $69.44 (compared to the current share price of $80.08).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
