Talk about a success story! The online auction site eBay (Nasdaq:EBAY) grew from selling a single broken laser pointer to an e-commerce juggernaut with revenues of more than $9 billion. Founded in 1995 by programmer Pierre Omidyar, the e-commerce site went public in 1998, followed by a string of aggressive acquisitions making ebay the largest and most sensational online auction company by far. Struggling through the dot com blow up years in the early 2000s, the stock hit a high of $59.21 per share in December of 2004.
However, despite success, shares have never surpassed this level and in fact were in a stair step-like down pattern on the monthly chart until February 2009 when shares hit a low of $10.22 per share. Since this low, eBay has climbed back up the ladder, hitting a high of $31.64 in November 2010 but price has floundered since then in a relatively tight channel.
What's the latest on the genre changing company used by millions to buy and sell? They just released strong fourth-quarter results with revenue being up 5% to $2.5 billion for the period. Net revenues for the full year were up 13% to $9.2 billion.
Now getting to the important matter, how is the stock reacting to the strong earnings? Shares rallied higher for several sessions prior to the earnings, then pulled back on earnings day. Today price has spiked about 4% higher in early trade on the heels of the impressive earnings. However, heavy resistance exists on the daily chart at $32 per share.