Schaeffer's 43rd Anniversary Stock Picks in 2024

eBay Stock Eyes Highest Close Since October

eBay expanded its stock buyback plan and upped its Q1 guidance

Managing Editor
Feb 14, 2020 at 9:48 AM
facebook X logo linkedin


The shares of eBay Inc (NASDAQ:EBAY) are up 0.9% to trade at $37.89 this morning, after the company announced it was raising its share buyback plan to $4.5 billion from $1.5 billion. The e-tail icon also disclosed a stronger-than-expected first-quarter guidance for 2020, which prompted a price-target hike from $51 to $47 at Credit Suisse.

The triple dose of positive headlines has eBay stock toppling its 200-day moving average and on track for its highest close since a late October bear gap. Thanks to some buyout rumors two weeks ago, EBAY is now up 13% in February and is cruising toward its fourth straight win.  

A round of upgrades and/or price-target hikes could create more tailwinds for the equity. Of the 22 brokerages in coverage of EBAY, 16 rate it a "hold" or worse, while the consensus 12-month price target of $38.88 is a slim 4.5% premium to last night's closing perch at $37.60. 

It's certainly an attractive time to be buying options premium on eBay, based on its Schaeffer's Volatility Index (SVI) of 21%, which ranks in the 9th percentile of its annual range. In other words, short-term EBAY options have priced in lower volatility expectations just 9% of the time over the last year.

 

A.I.’s Dirty Little Secret: The Real Power Behind The AI. Boom ✨

Anyone who’s seen the The Matrix movies knows that A.I. needs power.  Lots and lots of power.

If you’ve seen the movie, you also know the grizzly results of the ensuing battle for that power.

Now, Wall Street’s battle for A.I. power won’t go to such extremes. Hopefully?

A.I. needs more power and that means more opportunities for stock traders in the know.

Download your free copy of “The A.I. Revolution: 4 Stocks to Buy Now”!