|Bid||41.44 x 100|
|Ask||42.60 x 100|
|Day's Range||41.49 - 42.50|
|52 Week Range||31.98 - 46.99|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 25, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||47.60|
eBay and PayPal today confirmed the signing of a previously-announced agreement to offer PayPal as a way to pay on eBay until July 2023. This new agreement builds on the payments partnership between the companies to make PayPal available as a payment option on eBay’s new intermediated payments model.
PayPal reports financial results after the market closes on Wednesday, and analysts expect another quarter of strong earnings growth.
Rare Bits, which launched in February, allows users to transact digital assets in cryptocurrencies. Billing itself as an eBay-like platform, Rare Bits raised $6 million from a star-studded round of investors. Startup Rare Bits is positioning itself to be the go-to site for cryptocurrency enthusiasts — or beginners — who want to buy digital assets.
According to industry reports, Alphabet’s (GOOGL) Google is in advanced discussions with respect to acquiring Nokia’s (NOK) airborne broadband business. Google could use Nokia’s airborne Internet technology to deliver faster Wi-Fi connectivity on airplanes. In-flight Internet provider Gogo’s (GOGO) stock price declined on the news of Google exploring the acquisition of Nokia’s airborne broadband technology.
The majority of analysts tracking Etsy (ETSY) have maintained a “buy” rating on the stock. On April 10, 2018, 50.0% of the ten analysts covering the stock recommended a “buy,” 40.0% recommended a “hold,” and 10.0% recommended a “sell.”
Comparing forward PE (stock price divided by analysts’ earnings estimates for the next four quarters) valuation multiples for companies in the same sector helps investors make sound investment decisions. On April 18, 2018, Etsy (ETSY) was trading at a 12-month forward PE (price-to-earnings) ratio of 69.7x. Following its 4Q17 results, its valuation multiple has increased 5.6%.
Etsy (ETSY) reported adjusted EPS (earnings per share) of $0.48 for 2017, which came in better than the analyst estimate by 22%. On a reported basis, EPS was $0.68 compared with a loss per share of $0.26 reported in 2016. Net income was $81.8 million as against a net loss of $29.9 million.
Earnings per share were higher despite a higher tax rate and a lower contribution from other income. What we didn’t like about the first quarter: 1) the pharma mix was not optimal, as key drugs Actelion, Darzalex, and Xarelto all missed our estimate. U.S. Remicade was down 16% Y/Y, in line with our estimate, but we were hoping for better.
For 2018, Etsy (ETSY) expects the adjusted EBITDA margin to be in the range of 20% to 22%. The company achieved annualized cost savings of nearly $35 million in 2017. Going forward, Etsy is also cutting down $4 million to $5 million in capital expenditure related to data center maintenance by migrating to the cloud. Overall, the cloud migration is estimated to cost the company around $10 million to $15 million in 2018.
For 2018, analysts expect Etsy (ETSY) to report revenue growth of 22.4% to $533.9 million. Etsy’s management has projected revenue to grow in the range of 21% to 23%, while GMS (gross merchandise sales) is expected to be up 14% to 16% on a YoY (year-over-year) basis as strategic initiatives gain traction. Mobile continues to be the biggest catalyst for mobile visits (web and app) with growth of 66%, a rise of 200 basis points on a YoY basis.
Etsy (ETSY) stock has had a terrific run so far in 2018. Etsy has been doing well for quite some time after the company, encouraged by activist investors, started exploring strategic alternatives. Last year, the company subsequently doubled down on growth initiatives such as cutting costs, revamping its management, and investing heavily in improving its digital platform.
Shares of eBay Inc. are up 1.5% in Friday morning trading after analysts at Credit Suisse raised their price target to $60 from $51. The new target is the highest among Wall Street analysts surveyed by FactSet. "As we look to the next five years of eBay's growth, we draw parallels with its global marketplaces platform peers in the form of Alibaba as well as MercadoLibre as we focus on its newly-announced payments [initiatives] as well as the potential for its advertising businesses," wrote the analysts, led by Stephen Ju.
Twitter (TWTR) generated investor returns of -15.7% in the trailing-one-month period and 101.1% in the trailing-12-month period. TWTR stock rose 2.4% in the trailing-five-day period.
eBay's (EBAY) first-quarter 2018 results are likely to benefit from the company's re-platforming and brand enhancement initiatives.
Korn/Ferry International, Manitowoc, eBay, Morgan Stanley and PayPal highlighted as Zacks Bull and Bear of the Day
Shares of eBay (EBAY) have climbed 23% over the last year, and Morgan Stanley (MS) analysts just recently "double upgraded" the stock. With that said, investors must still consider how eBay is expected to perform in the first quarter, as Q1 will likely have a greater impact on eBay's near-term price movement than Morgan Stanley's positive long-term outlook.