The earnings forecasts for this internet marketplace have been raised by 11 analysts in the past 30 days.
eBay Inc. (EBAY)
from The Chartist
The stage now appears to be set for a more pronounced correction than we have seen over the last 18 months. However, we do not expect it to mark the end of the bull market. Primarily because we have yet to see the speculative excesses that historically takes place during the final stages of bull markets when the public jumps in with both feet.
In the latest poll taken by the American Association of Individual Investors, the bullish contingent was at 33.7%, which marked the 24th consecutive week that the bullish percentage was below its historical average of 38.5%. Over the last 30 weeks the bullish percentage has only been above its historical average on one occasion.
At the conclusion of the last bull market back in October of 2007 the percentage of AAII bulls clocked in at 55%. Two days before the peak of the dot.com boom that ended on March 24, 2000, the percentage of AAII bulls reached 66%. Simply put, the public is not on board. With our models in a bullish mode, our advice for investors acting in sync with our Actual Cash Account is to stay in an approximate 95% invested position. We seriously doubt that the peak of the bull market is at hand considering the growing number of analysts that are predicting its demise.
Here’s a summary of the recent earnings report for eBay Inc. (EBAY). The company posted net income of $27 million, or 2 cents a share, compared with $437 million, or 38 cents a share, a year ago. Adjusted for one-time items, eBay earned $493 million, or 45 cents a share, compared with 43 cents a share a year ago. Revenue reached $2.3 billion, compared with $2.2 billion in the year ago period. The numbers matched estimates.
Dan Sullivan, The Chartist, www.thechartist.com, 900-942-4278, August 10, 2017