Shares in eBay to rally on Q3 profits jump?

<p>Good profit and sales news for eBay could lead to a rise in share price.</p>

On the Nasdaq last night (October 17th), eBay was stable, but when Wall Street opens later today the online auction site may make further gains.

This is because the company has reported a jump in profits and sales in the third quarter of the year, as more consumers are making use of the ecommerce platform, as well as its payment service PayPal.

Net profit for eBay was higher in the three months to the end of September by 14 per cent year-on-year to $718 million (£445 million), while net revenues rose by 15 per cent to $3.4 billion.

The group has forecast sales of between $385 billion and $4 billion for the fourth quarter of 2012.

Commenting on the results, chief executive John Donahoe stated: "We had a great third quarter across our company."

At close last night, eBay was steady on the Nasdaq at $48.20 per share.

Learn all about CFD trading strategies and the Nasdaq at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.