EBAY Share Price Jumps Over 9% in a Day

Yesterday, traders focused on:
→ labour market news, which showed a slight decrease in new unemployment claims;
→ comments from the Federal Reserve: Christopher Waller stated that inflation is expected to fall to the target rate of 2% in the medium term, and further monetary easing would be "appropriate".

However, these factors did not lead to significant changes in stock indices. The S&P 500 index (US SPX 500 mini on FXOpen) fell by 0.12% yesterday.

The major highlight was the surge in eBay Inc. (EBAY) shares, which rose by more than 9%. This was driven by Meta Platforms (META) announcing a test launch of a new feature that would allow users in the US, France, and Germany to browse eBay products on Facebook Marketplace and complete transactions on eBay.

If the test proves successful, this feature could potentially drive a significant increase in eBay’s revenue due to a new influx of buyers.

Technical analysis of eBay’s (EBAY) share price chart shows that:
→ in early February 2024, following the release of a strong Q4 2023 report (marked by an arrow), the price began forming a stable upward channel (highlighted in blue);
→ on October 31, the price tested the lower boundary of the channel and rebounded sharply, indicating strong demand;
→ the $66 level acted as key resistance at the end of 2024, consolidating the share price around the median line;
→ following yesterday’s significant news, the price jumped to the upper boundary of the channel, briefly surpassing the psychological $70 mark.

It is possible that eBay's share price could face downward pressure near the upper boundary of the channel and the $70 level, as indicated by the long upper shadow on yesterday's candlestick. However, given the sustained upward trend and strong fundamentals, the outlook for 2025 remains optimistic.

According to TipRanks:
→ 10 out of 24 analysts recommend buying eBay shares;
→ the average 12-month price target for eBay shares is $64.36.

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