eBay Inc (EBAY) Shares Drop Over 11% After Weak Revenue Forecast

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Shares of eBay Inc (NASDAQ:EBAY) are down significantly this morning in pre-market trading, after the company released their fourth quarter earnings, which came in slightly below what analysts had expected, and announced their full-year adjusted numbers forecast.

eBay Inc (NASDAQ:EBAY) reported earnings of $0.50 per share which came in on par with analysts’ expectations. However, the company’s revenue of $2.3 billion fell slightly short of the $2.32 billion that Wall Street was expecting. These numbers came very close to last year’s numbers, which signal that the company may have leveled off as far as growth potential goes.

eBay also reported a forecast full-year adjusted profit of $1.82 – $1.87 per share on revenue of $8.5 billion to $8.8 billion. This was significantly lower than the $1.98 per share that analysts had expected on $8.99 billion in revenue. Shares of eBay Inc (NASDAQ:EBAY) are up close to 12% in the pre-market this morning. The stock closed at $26.42 during the last trading session. It is up 1.36% since June 23, 2015 and is uptrending. It has outperformed the S&P500 by 12.38%.

From a total of 24 analysts covering eBay Inc (NASDAQ:EBAY) stock, 7 rate it a “Buy”, 1 a “Sell”, and 16 a “Hold”. This means that 29% of the ratings are positive. The highest target price is $69 while the lowest target price is $27. The mean of all analyst targets is $32.13 which is 21.61% above today’s ($26.42) stock price. eBay Inc was the topic of 33 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 18 with a “Positive” rating. JP Morgan maintained shares with a”Neutral” rating and a $32 target share price in their report from a September 24. TheStreet downgraded EBAY stock in a recent report from October 23 to a “Hold” rating. Cantor Fitzgerald downgraded the rating on September 10. Cantor Fitzgerald has a “Hold” rating and a $27 price target on shares. Finally, RBC Capital Markets maintained the stock with a “Sector Perform” rating in a report they issued on an October 22.

The institutional sentiment decreased to 0.79 in Q2 2015. It’s down 0.29, from 1.08 in 2015Q2. The ratio fall, as 224 funds sold all their eBay Inc shares they owned while 294 reduced their positions. 71 funds bought stakes while 336 increased their total positions. Institutions now own 991.00 million shares which is 0.95% more than the previous share count of 981.68 million in 2015Q2.

Marlowe Partners Lp holds 10.41% of its total portfolio in eBay Inc, equating to 648,700 shares. Rit Capital Partners Plc owns 1.75 million shares representing 10% of their total US portfolio. Moreover, Junto Capital Management Lp has 5.96% of their total portfolio invested in the company, equating to 1.09 million shares. The United Kingdom-based Independent Franchise Partners Llp has a total of 5.88% of their portfolio invested in the stock. Clenar Muke Llc, a Australia-based fund reported 34.28 million shares owned.

Since March 8, 2015, the stock had 0 buys, and 2 insider sales for a total of $28.00 million in net activity. Swan Robert Holmes sold 494,634 shares worth $14.00 million. Marks Alan Lee sold 17,881 shares worth $1.07M. Doerger Brian J. sold 1,000 shares worth $58,933. Donahoe John J sold 145,258 shares worth $8.56M.

eBay Inc. is a global technology company. The company has a market cap of $31.72 billion. The Firm has created an open source platform that provides software developers and merchants access to its applications programming interfaces (APIs) to develop software and solutions for commerce. It has 13.38 P/E ratio. The Company’s divisions include Marketplaces and Payments.

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