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The Best Options Trade for eBay (EBAY) Earnings

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On Wednesday, October, 19th, eBay (EBAY - Free Report) will release its third quarter earnings results after the bell. The company is a Zacks Rank 3 (hold), and have a Value, Growth, and Momentum score of C. eBay was downgraded to a hold within the last 30 days as well

Dave will look at eBay’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on eBay ahead of earnings.

eBay in Focus

eBay (EBAY - Free Report) is one of the world's largest online trading communities. eBay creates a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. eBay enables trade on a local, national and international basis with local sites in numerous markets in the United States and country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia. (Company Press Release)

eBay is expected to report earnings at $0.36 per share according to the Zacks Consensus Estimate. Last quarter they met earnings expectations at $0.36 per share, and they have an average surprise of 4.54% over the last four quarters.

EBAY INC Price, Consensus and EPS Surprise

EBAY INC Price, Consensus and EPS Surprise | EBAY INC Quote

eBay is trading around $32 a share, and they are near to their 52-week high of $33.19 per share.

eBay is tied to the internet-commerce sector, and their industry is in the top 24%. The internet-commerce sector is very competitive with Amazon (AMZN - Free Report) and Alibaba (BABA - Free Report) being global giants in the online retail marketplace. eBay’s competitive edge is their platform allows individuals to mom and pop operations to sell items through an auction system while other online retailers sell items like a normal store. That said, Amazon and other online retailers can have a competitive edge over eBay from having a larger customer base to being faster in shipping products to their consumers. For example, Amazon has developed same-day delivery of their products in certain markets. Moving forward investors should keep an eye out how the online-commerce sector changes.

Bottom Line

How should investors play eBay ahead of their earnings report? For insights on the best options trades, make sure you are subscribe to Live Trader to see Dave Bartosiak at 1:30pm on Monday.

 
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