EBay (EBAY): Stock With Unusual Social Activity
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified eBay as such a stock due to the following factors:
- EBAY has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 12.00 mentions/day.
- EBAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $412.3 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on EBAY:
eBay Inc. operates e-commerce platforms that connect various buyers and sellers worldwide. Its platforms enable sellers to organize and offer inventory for sale; and buyers to find and buy it virtually anytime and anywhere. EBAY has a PE ratio of 16. Currently there are 5 analysts that rate eBay a buy, 2 analysts rate it a sell, and 15 rate it a hold.
The average volume for eBay has been 10.5 million shares per day over the past 30 days. eBay has a market cap of $30.4 billion and is part of the services sector and specialty retail industry. The stock has a beta of 1.13 and a short float of 2.2% with 1.39 days to cover. Shares are down 1.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates eBay as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and revenue growth. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- EBAY INC has improved earnings per share by 10.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, EBAY INC turned its bottom line around by earning $1.60 versus -$0.66 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $1.60).
- The gross profit margin for EBAY INC is currently very high, coming in at 85.12%. Regardless of EBAY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EBAY's net profit margin of 22.55% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has decreased by 23.0% when compared to the same quarter one year ago, dropping from $626.00 million to $482.00 million.
- Net operating cash flow has decreased to $641.00 million or 44.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full eBay Ratings Report.
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