Bank of America: eBay Earnings Preview

In a research report published earlier today, Bank of America remains positive on eBay

stock, despite competition from Amazon, difficult GMB comps and soft auction sales. According to Bank of America, "eBay reports on 4/18, we expect in-line results with our rev/EPS est. of $3.15bn/$0.53, with EPS above street at $0.52 (guide was $0.50-$0.51). US GMV, Int'l GMV and Merchant Services TPV trends are important for sentiment. We expect TPV growth of 26% in 1Q, and further deceleration from 4Q at 29% is a risk. We are cautious on the stock on the print based on negative reaction to Google's print, growing expectations for offline PayPal, and elevated street 2Q EPS ests. (2Q a tough comp.), but think eBay could have a strong 2nd half." Bank of America maintains its Buy rating and $43 PO on eBay, which closed yesterday at $35.50.