eBay (EBAY) Ready to Breakout?

An ascending triangle pattern has emerged in the chart of eBay Inc. (EBAY). This is a bullish pattern, which means I’m looking for a breakout…

eBay Inc. (EBAY) operates a leading online eCommerce marketplace that enables consumers to purchase goods globally. eBay has more than 170mn active users. The company also operates Stubhub, Half.com, brands4friends, and a number of classifieds businesses globally.

The company is seeing strong Marketplace growth and strength in its promoted listings advertising offering. Management has undertaken growth initiatives to enhance the seller experience by offering innovative seller tools. The company’s push into mobile should drive growth going forward.

EBAY has a healthy balance sheet with $3.8 billion in cash and only $18 million in short-term debt as of the end of last year. The company is also quite profitable with a net profit margin of 52.9%.

Revenue was up 17.5% over the past year, while earnings soared 84%. The stock is also trading at a low multiple with a trailing P/E of 17.66 and a forward P/E of 15.48. The stock has shown mixed performance so far this year, but has been trending up since early March.

Take a look at the 1-year chart of EBAY below with added notations…

See chart and continue reading at STOCKNEWS.com