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.

eBay

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.

Siraj Sarwar - Lead Analyst
@tradethedayfx
Siraj Sarwar has been performing analysis on the stock market, equity research and general business consultation. He regularly contributes articles on economics, commodities, and equities to the world's leading websites, including Trade the Day, SeekingAlpha, TheStreet, and MSN.
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