EBay Inc. lost a good share of capitalization. #EBAY

Statements of eBay Inc. for the third quarter of 2019 showed that the total capitalization of the project has decreased 2.3 times and made up 310 million USD. The share price eBay Inc dropped to 37 cents. In the same quarter of 2018, the market capitalization was significantly higher, with a score of 73 cents per share and a total market capitalization of USD 721 million. Earlier, in a press release the company reported that profit rose to 67 cents from 56 cents a share.


At the moment, the company's revenue is in a stable position, bringing the income of 2 billion 649 USD, and if not to take into account the change in the rate of currency exchange, sales increased 2%. Reporting indicated that the total volume of transactions at the online auction has decreased by 4% and now is about 21.7 billion USD. The percentage of active buyers around the world increased and reached 83 million people, the analysis was done at the end of the seventh quarter.


Through analysis, the experts commented on the fact that adjusted earnings will be able to stay at 64 cents per share, taking into account the revenue of 2.65 billion USD and total turnover of 22 billion USD. In the second quarter of 2019 in the form of dividend payments and redemption of shares the company eBay paid its shareholders the amount of $ 1,115 billion USD.


While eBay will deal with innovations and strategic revision of the business, analysts predict the same fall in revenue in the fourth quarter of 2019. On current estimates, the total capitalization will be reduced to 2.77-2.82 billion USD. Recall that in 2018, the market capitalization was at a level of 2.88 billion USD.


Experts believe that revenues for the current 2019 will amount of 10.75-10.8 billion USD, while previously it was assumed that the amount will reach 10.75 per of 10.83 billion USD. Net profit will be in the range of 1,97-2,02 USD per share, adjusted profit of 2.75-2,78 USD per share although it was previously assumed quite different figures.


Last Wednesday, November 20, 2019 shares in eBay fell on additional auctions by as much as 6.3 percent, the reason for that - the reading company statements.
With the beginning of the year capitalization of the company jumped by about 40%, while the stock index Standard & Poor's 500 rose 20% during this period.