eBay (NASDAQ:EBAY) stock has plunged 8.5% over the past week as of close on October 30. This came after the company trimmed its sales and earnings outlook for 2019 after releasing its third-quarter results last week. eBay projected net revenues between $10.75 billion and $10.8 billion, which would represent organic, currency-neutral growth between 2% and 3%.
The company said that it has mapped out a three-year plan to improve margins. It had originally projected earnings per share between $1.97 and $2.07 for the full year but slashed this guidance to between $1.97 and $2.02 after its Q3 report. In the quarter, diluted EPS came in at $0.37 which missed its own forecast between $0.40 and $0.44. This was down from diluted EPS of $0.73 in Q3 2018.
Shares of eBay currently boast a favourable forward price-to-earnings ratio of 12, according to projections from Morningstar. However, it possesses a high price-to-book value of 8.9. The stock last had an RSI of 32, which puts eBay stock just outside of technically oversold territory.
Growth in the e-commerce sector has been electric in the back half of this decade, and this is expected to continue into the early 2020s. eBay has been overshadowed by the rise of giants like Amazon (NASDAQ:AMZN) and Shopify (NYSE:SHOP), but it is still a power in this sector. I like the stock after its post-earnings dip, especially ahead of the busy holiday season.
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