Analyst: eBay Stock Sports an Improved Outlook

EBAY has massive upgrade potential amongst the brokerage bunch

Deputy Editor
Jun 6, 2024 at 9:12 AM
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E-commerce stock eBay Inc (NASDAQ:EBAY) is up 1.5% before the bell following a bull note from Citi. Following a period of rating suspension, the Wall Street analyst upgraded EBAY to "buy" from "neutral," citing an improved outlook, a return to margin expansion, and earnings upside. In separate news, eBay will reportedly no longer take American Express (AMEX) due to higher-than-usual fees.

On the charts, eBay stock is looking to make a run at its two-year highs of $55.15 from May 28. The security recently bounced off of its 60-day moving average, extending its year-over-year lead to more than 17%.

Analyst sentiment doesn't match eBay stock's price action. The equity boasts a 21.5% year-to-date lead, but 17 of 25 covering brokerages recommend a tepid "hold" or worse. Should this pessimism unwind, it could provide additional tailwinds for the shares. 

Premium traders are in luck, as the equity sports affordably priced options at the moment. The stock's Schaeffer's Volatility Index (SVI) of 23% sits in the 11th percentile of its annual range, indicating options players are pricing in low volatility expectations for EBAY.


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