NEW YORK, NY / ACCESSWIRE / July 24, 2017 / eBay Inc. saw a loss on Friday despite releasing second quarter financial results on Thursday that were in line with what analysts were looking for. Traders were put off by the company's lackluster outlook for the third quarter as well as for the full year. Shares of Microsoft were almost flat despite beating on its fourth quarter earnings results and after several big firms upped their price targets on the company.

RDI Initiates Coverage on:

eBay Inc.
https://ub.rdinvesting.com/news/?ticker=EBAY

Microsoft Corporation
https://ub.rdinvesting.com/news/?ticker=MSFT

eBay Inc. closed down 1.53% on Friday on trading volume more than twice as large as usual. The e-commerce auction site announced second quarter financial results after the close last Thursday that were in line with estimates, but discouraged traders with a disappointing outlook for the third quarter as well as the full year. Revenue for Q2 came in at $2.33 billion, which was a 4% growth and in line with Wall Street's estimates. Earnings at 45 cents per share were also in line with estimates. Looking ahead eBay has forecast earnings in the range of 46 cents to 48 cents for the current third quarter. Analysts had been expected 49 cents. Revenue, however, is above the consensus estimate of $2.32 billion and is expected to be in the range of $2.35 billion to $2.39 billion. For its yearly outlook, the company sees revenue in the range of $9.3 billion to $9.5 billion while the consensus sees $9.4 billion. Adjusted earnings are expected to be $1.98 to $2.03 while the consensus calls for $2.00.

Access RDI's eBay Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=EBAY

Microsoft Corporation closed down a modest 0.58% on Friday despite easily topping Wall Street's estimates in its fiscal fourth quarter earnings report. The tech giant reported 98 cents a share excluding items for the period. This was not only a growth of 42% year over year but crushed the 71 cents analysts had expected. Sales came in at $24.7 billion, which was a growth of 9%, and also ahead of the $24.27 billion that the Street was looking for. Several analysts upped their price targets on the stock after the company released its results including Piper Jaffray which raised its price target to $90 from $80 and reiterated an "overweight" rating. Analyst Alex Zukin noted, "Microsoft reported a very strong end to the fiscal year beating across all segments and metrics punctuated by 30%-plus commercial cloud bookings growth, with accelerating Azure growth and improved gross margins." Other firms to raise their price targets also included Deutsche Bank, BMO Capital Markets, Stifel, and UBS.

Access RDI's Microsoft Corporation Research Report at:
https://ub.rdinvesting.com/news/?ticker=MSFT

Our Actionable Research on eBay Inc. (NASDAQ: EBAY) and Microsoft Corporation (NASDAQ: MSFT) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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