EBay's stock price has been working its way upward since President Donald Trump softened his stance on global tariffs. Now, the retailer's shares have entered a buy zone.
The stock hit its entry point on Friday coming out of a first-stage consolidation pattern. Early-stage bases carry more solid prospects of big gains than do later-stage formations.
The daily chart farther below shows eBay's entry point at 71.61, with the buy zone that reaches up 5% to 75.20, according to Investor's Business Daily methodology.
As eBay shares move within this key area, the online auction site holds a strong Composite Rating of 93 out of a possible 99.
EBay's Path To A Buy Zone
EBay has been in a consolidation for more than 50 days. The period includes a 4.1% leap on April 9, that came as part of a roaring stock-market rally ignited when Trump paused reciprocal global tariffs on most countries for 90 days.
Shares of eBay then pulled back slightly May 1, as its first-quarter results were accompanied by a C-suite shake-up. But the stock regained strength after the U.S. and China this month reached a temporary truce on tariffs. EBay has been updating customers about U.S. tariffs policy on its website.
EBay shares wobbled just after its quarterly report as it said Steve Priest would be leaving the role of chief financial officer. But the stock regained higher footing as investors appeared to embrace Peggy Alford as its new CFO, marking her return to the company 20 years after her departure. EBay also highlighted its heightened focus on the hot investing area of artificial intelligence.
"In addition to the CFO change, eBay is evolving its leadership structure designed to fuel faster innovation, deepen cross-functional collaboration, and position the company for long-term growth in a rapidly evolving digital and AI-powered landscape," the company said in its earnings press release.
IBD's Stock Checkup tool shows eBay has outperformed 90% of other stocks in IBD's database, according to its Relative Strength Rating. EBay also is part of the retail internet sector, which ranks 19th out of IBD's 197 industry groups.
EBay Stock: Earnings Growth In Sight
The company currently is marking its 30th year in operation. Based in San Jose, Calif., eBay runs in more than 190 markets worldwide and has roughly 134 million active buyers, according to its first-quarter report.
Wall Street analysts have brightened their view on eBay's annual earnings picture since the company posted its first-quarter results. Analysts now are looking for 9% earnings growth to $5.34 a share in 2025. For 2026, they see 8% expansion to $5.77 a share.
For the first quarter, EBay's adjusted earnings of $1.38 a share were above the $1.34 a share expected in a FactSet poll of analysts. The company now predicts second-quarter adjusted earnings of $1.24 to $1.31 a share, compared with expectations of $1.29 a share.
As of Tuesday, the stock was well above its 50-day and 200-day moving averages, signaling technical strength. Another upbeat sign comes from eBay's 21-day exponential moving average recently crossing above its longer-term 50-day line.
IBD's MarketSurge database shows mutual funds own 55% of outstanding eBay shares. Funds during the most recent three quarters have been net buyers.
But a less-robust indication for eBay stock is its Accumulation/Distribution Rating at B-. That indicates moderate institutional buying over the last 13 weeks.
