Why eBay Rallied More Than 15% in February
Shares of eBay (NASDAQ: EBAY) surged 15.1% in February, according to data provided by S&P Global Market Intelligence. The primary catalyst was the e-commerce company's solid fourth-quarter results. Those numbers are giving it the confidence to return more cash to shareholders.
eBay ended 2023 on a solid note. The e-commerce company reported $2.6 billion in revenue during the fourth quarter, up 2% from the year-ago period. Meanwhile, its adjusted net income was flat at $1.07 per share. Those numbers exceeded analysts' expectations of $2.5 billion in revenue and $1.03 per share of adjusted earnings. The company also reported better-than-expected gross merchandise volume at $18.6 billion, a 2% increase. "Last year, we made significant progress toward our vision to reinvent the future of e-commerce for enthusiasts," stated CEO Jamie Iannone in the fourth-quarter earnings press release.
The company expects to deliver more forward progress in 2024. It sees its first-quarter revenue rising by as much as 2%, which would exceed analysts' expectations at the high end. Earnings should also improve this year as it benefits from cost reduction efforts, including reducing staff by 9%.
Source Fool.com
