The results of Amazon, Alibaba and eBay confirm the good health of the e-commerce sector.
Throughout this week, we have seen the results of the top 3 e-commerce giants, all being very positive. This demonstrates once again the strength of this sector, and the positive moment they are experiencing thanks to the current situation and the increase in the demand for their services and wide variety of products they offer during the pandemic.
During yesterday’s trading day, after the market closed, we learned of eBay's results, which showed a profit per share of $0.86 with income of $2.87 billion, exceeding market expectations since it was expected that revenue was to reach $2.7 billion with earnings per share of $0.8296.
After releasing these figures, eBay’s shares saw an increase of 9.50% in the pre-opening, thus continuing with the increases of 1.24% of the day yesterday.
Technically speaking, these positive results may favour the current upward trend, bringing the price back to its current resistance level as reached in mid-July 2020, after bouncing in the coinciding zone of its the uptrend line and its support level around $ 46.50 per share, which has led it to lean on its 18-session black moving average to break the medium-term downtrend line.
Source: Admiral Markets MetaTrader 5. eBay daily chart. Data range: from October 3, 2019 to February 4, 2021. Prepared on February 4, 2021 at 11:25 am CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: 39.16%
- 2019: 28.64%
- 2018: -25.62%
- 2017: 27.11%
- 2016: 8.04%
On the other hand, on Tuesday we learned of Amazon’s and Alibaba’s results. Amazon's were especially positive, as the results far exceeded market expectations reaching earnings per share of $14.09 with revenues of $1.25 billion compared to earnings per share of $7.16 and revenue of $1.2 billion dollars expected.
As with eBay, these positive results give new impetus to its uptrend, which has led it to reach the important level of resistance in the area coinciding with the medium-term downtrend line from its all-time highs and the fringe. side channel top in green.
The breakout of this level may lead the price to seek the area of its all-time highs again.
Source: Admiral Markets MetaTrader 5. Amazon daily chart. Data range: from October 23, 2019 to February 4, 2021. Prepared on February 4, 2021 at 11:30 am CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: 76.26%
- 2019: 23.03%
- 2018: 28.43%
- 2017: 55.96%
- 2016: 10.95%
In the case of Alibaba, earnings per share reached $22.03 per share compared to the $20.59 expected, with revenue of $221.08 billion compared to the expected $214.17 billion. After the strange disappearance of Jack Ma rose doubts, these positive results bring new optimism to this company.
Technically speaking, after the strong rises last year, reaching all-time highs by the end of last October, Alibaba has saw a setback which has led it to face its 61.8% fibonacci retracement level forming throughout this time a possible reversed shoulder-head-shoulder formation that could indicate a change in trend if the price finally manages to overcome its current resistance level in the green band and the 38.2% fibonacci level.
The confirmation of this trend change figure could lead the price to experience a sharp rise that could lead it to seek its all-time highs again.
Source: Admiral Markets MetaTrader 5. Amazon daily chart. Data range: from October 23, 2019 to February 4, 2021. Prepared on February 4, 2021 at 11:30 am CET. Keep in mind that past returns do not guarantee future returns.
Price evolution in the last 5 years:
- 2020: 9.73%
- 2019: 54.74%
- 2018: -20.51%
- 2017: 96.37%
- 2016: 8.05%
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