Last week, eBay (NASDAQ:EBAY) stock recorded one of its biggest single-day gains in 2020. The company announced that it completed the sale of its StubHub business. Also, the company updated its first-quarter revenue forecast. The big move helped eBay regain some of the ground it lost after its initial revenue forecast disappointed investors.
eBay updated its revenue forecast for the first quarter ending in March to $2.31 billion–$2.36 billion, which compared favorably with the consensus estimate at $2.35 billion. The new revenue forecast takes into account the sale of eBay’s online ticketing business StubHub. The business generated $321 million in revenue in the fourth quarter of 2019, which increased by 2.0% YoY (year-over-year).
Previously, eBay forecast first-quarter revenue of $2.55 billion–$2.60 billion including the StubHub contribution. However, the original revenue forecast fell short of the consensus estimate at $2.81 billion.
View more information: https://marketrealist.com/2020/02/will-ebay-stock-buyback-plan-benefit-shareholders/