eBay stock is one of the promising assets of the stock market. The company pays dividends, so it will be of interest to investors who choose securities that bring additional income. Before you start investing, study the company's financial performance and familiarize yourself with possible risks.
eBay Inc. - an international online platform that provides services for auctions and online stores. The company was founded in 1995 in San Jose by programmer Pierre Omidyar. He created an online auction, which at the time was called Auction Web and was completely free.
The IPO of the trading platform was held in 1998. eBay's share price at the time of the initial offering was set at $18. The platform's securities are now traded on the stock exchange under the NASDAQ ticker: eBay. Investors can trade this asset through an online broker after registering.
eBay Inc connects buyers and sellers in more than 190 markets around the world. The online auctions that take place on this site are characterized by a large assortment of goods and relatively low prices. The company works with individuals, entrepreneurs, and small and large businesses.
At eBay auctions, you can buy rare and unique items that cannot be found in regular stores. The platform sets relatively low prices for the placement of goods. At the same time, over the years, the site has gathered a huge audience of buyers, which makes the company attractive to sellers of goods.
In the first quarter of 2022, the company announces new initiatives aimed at boosting revenue soon. For example, eBay has agreed with Klarna. This will allow the shopping platform to open up access to installment payment for purchases to German citizens. The company has also launched its digital wallet. Customers of the corporation will be able to credit their proceeds to it and use them to buy goods on the trading platform.
eBay stock is attractive to investors looking for dividend-paying securities. For example, the company paid $129 million in dividends to shareholders in the first quarter of 2022. In addition, $1.25 billion was returned to security holders through share repurchases. The board said registered shareholders will receive a payout of $0.22 per security on June 17, 2022.
In May 2022, the company reported financial results for the first quarter of this year. Revenue was $2.5 billion, down 6% from the same period last year. Non-GAAP quarterly net income reached $625 million per eBay share, the figure was $1.05. GAAP operating profit declined to 27.9%, down from 31.9% for the same period last year. Non-GAAP operating margin declined to 32.4% in the first quarter of 2022.
The company generated $222 million in revenue from promoted listings in the first quarter. That figure was down 1%. The trading platform earned a total of $267 million from promotional offerings.
In early March 2020, eBay stock was trading at $30. After the coronavirus pandemic began during quarantines, demand for online shopping surged. This led to a surge in the trading platform's stock. Thus, in August 2021, quotes were as high as $70.
To start trading in real financial markets, go to your personal DotBig account. After that, make a deposit, open a trading terminal and select an eBay Stock asset.
During the year, eBay stock went from $65 to $47. The period from June 2021 to June 2022 was taken into account when analyzing the change in quotes.
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In terms of e-commerce, Amazon is considered eBay's main competitor. Among online auctions, the company's competition is Auctions.com.
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