Ebay is a Top Pick for 2021 and Beyond, Here’s Why
Consumers move towards e-commerce platforms have been creating a big value investment opportunity for investors for the long-term. This is because e-commerce sales increased 40% year over year in 2020 and forecasted to increase at a high double-digit rate in the years ahead.
eBay (NASDAQ: EBAY) is among the most prominent online marketplace where buyers and sellers meet to discuss deals. The company has capitalized on the increasing demand, resulting in a 20% revenue increase for 2020 compared to the year-ago period.
What’s more, robust demand and consumer shift have added 80% to Ebay’s share price in the last twelve months, driven by the pandemic related shift to online platforms. Moreover, the company raised its dividends by 13% to $0.18 per share.
eBay is Likely to Extend Momentum into 2021
Besides strong performance in 2020, the company is well set to accelerate gains into 2021. It expects first-quarter revenue in the range of $2.99 billion compared to the consensus for $2.53 billion and up from past year quarterly revenue of $2.37 billion.
Moreover, the e-commerce platform has also been converting big revenue growth into hefty profits, with first-quarter earnings expectations of $1.08. The earnings per share consensus estimate stand around $0.85.
Last year, eBay has laid out a long-term vision of tech-led reimagination over the next few years. The company says they are working on three main initiatives to reach their plan: first, to defend its core by building compelling next-gen experiences; second, to become the partner of choice for sellers; and third, to cultivate lifelong trusted relationships with our buyers.