- The technical indicators’ summary shows a sell signal for eBay Inc.
- The stock price has given a negative return in the last six months.
- eBay Inc. has a share float of 530 Million shares.
eBay Inc. (NASDAQ: EBAY) stock is currently experiencing a downward trajectory in its stock price within the weekly timeframe. Notably, the stock’s price pattern shows a consistent formation of lower highs.
An analysis of technical summary indicators indicates a prevailing negative momentum for EBAY stock. Out of a total of 26 indicators, the majority are giving a sell signal, suggesting the likelihood of a price decline in the near future.
Additionally, the profit margin percentage of the stock has declined significantly. In Q4 2023, the profit margin was 27.76% whereas in Q2 2023, it only came up to 7%. This shows the company is not performing well.
EBAY stock is known for its quarterly dividend payments, with a dividend yield ratio of 2.22% and a dividend payout of 7.97%.
Examining the historical price movement of eBay Inc.’s stock, we see that it reached a peak of $81.06 in October 2021, after which it entered a downtrend. Over the course of a year, EBAY stock saw a decline of approximately -56%.
However, it’s worth noting that the stock found support at the $36 level, leading to a recovery of 36% from its lowest point. Despite this recovery, the price faced resistance at the $51 level and struggled to surpass it.
Presently, eBay’s stock price is oscillating within a descending triangle pattern, and it recently experienced a decline after approaching the resistance level. This suggests a weak pattern formation, indicating a potential future price drop.
eBay Inc. (EBAY) Stock Price Analysis
EBAY by writer50_tcr on TradingView.com
EBAY stock is trading below both the 50-day and 100-day EMAs and this is a negative signal. The price is likely to decline in the upcoming days.
In terms of technical indicators, the signal line is positioned below both a red histogram formation and the MACD line for EBAY stock. This configuration suggests weakness in the stock and raises the likelihood of a future price decline.
Furthermore, both the 14-day SMA line and the RSI line for EBAY stock are hovering near the 30 mark. The downward trend in the RSI line points to a potential price decline on the horizon.
Conclusion
eBay Inc.’s stock price is dropping, as per the price analysis, and it is expected that this downward trend will continue. The price is reaching lower highs, and all the signs point in a downward direction. It is therefore expected that the price of EBAY stock will decline in the upcoming days.
Technical Levels
- Support Level– $42.3
- Resistance Level– $44.5.
Disclaimer
The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.