eBay Stock Soars at Start of Historically Strong Week

The WSJ is reporting Starboard Value holds an EBAY stake, too

Jan 22, 2019 at 9:59 AM
facebook twitter linkedin

The shares of eBay Inc (NASDAQ:EBAY) are up 12.1% to trade at $34.50, after the Wall Street Journal reported Elliott Management and Starboard Management hold stakes in the online retailer. Additionally, the former unveiled a letter sent to EBAY's board of directors outlining a five-point plan -- which includes dropping StubHub -- that it believes could double the stock's value by the end of 2020.

Against this backdrop, EBAY stock is on track for its biggest one-day gain since Feb. 1, and is trading north of its 200-day moving average for the first time since June. This positive price action is just more of the same for the shares, though, which were up 10.4% year-to-date heading into today's trading. Plus, eBay has been one of the best stocks to own in the week following Martin Luther King Jr. Day, according to Schaeffer's Senior Quantitative Analyst Rocky White.

There's plenty of skepticism priced into EBAY shares, too, which could fuel more upside on a potential unwind. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), EBAY's 10-day put/call volume ratio of 2.17 ranks in the 97th annual percentile, meaning puts have been bought to open over calls at a quicker-than-usual clip.

Elsewhere, 13 analysts maintain a tepid "hold" recommendation on EBAY stock, compared to 10 brokerages that carry a "buy" or better recommendation. A shift in sentiment among options traders and/or a round of bullish brokerage notes could create tailwinds for the retail shares.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners