Dallas, Texas 05/014/2014 (FINANCIALSTRENDS) –eBay Inc (NASDAQ:EBAY) is still on the mat after investors got cold feet in the wake of the company’s first quarter financial results announced at the end of April. The stock was trending upwards of $55 before April 29, and has since steadily climbed down towards $50. The question for investors now is whether it will drop down below $50, and if it does, will the resistance level hold the stock down even though the fundamentals indicate otherwise?
eBay First Quarter 2014 Financial Results
eBay reported fairly strong financial results, and investors didn’t really have much to complain about in the numbers. The company reported $4.3 billion in revenue for the first quarter, an increase of 14% compared to the same quarter last year. Non-GAAP earnings to $899 million, or $0.70 per diluted share, a 11% increase as compared to the first quarter in 2013. The $0.70 EPS also beat the analyst consensus estimate of $0.67.
Statement by eBay Inc. CEO John Donahoe
eBay Inc. President and CEO John Donahoe said that, “We delivered a strong first quarter, with enabled commerce volume up 24 percent and revenue up 14 percent. We are committed to delivering sustainable shareholder value and focusing on what matters most to our investors. We are executing our growth plans, capitalizing on the synergies in our portfolio and aggressively executing our $5.0 billion share buyback program.”
They may need to accelerate the share buyback program if the stock continues heading downhill. If you’re still wondering why eBay is not selling like hot cakes on the NASDAQ, which has more to do with the competition.
To be specific, competition for eBay marketplace from Amazon.com, Inc. (NASDAQ:AMZN) which is growing like a weed, and the news about potential competitors for PayPal with payment gateway systems being developed by Facebook Inc (NASDAQ:FB) and Apple Inc. (NASDAQ:AAPL).