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Eventbrite (EB) Stock Jumps 6.4%: Will It Continue to Soar?

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Eventbrite EB shares soared 6.4% in the last trading session to close at $22.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13.8% gain over the past four weeks.

Increased optimism over accelerated recovery of the live-events industry primarily led to the increase in Eventbrite’s share price. Eventbrite’s recently reported fourth-quarter 2020 results reflected recovery in paid ticket volume that drove top-line growth of 22% sequentially. Moreover, stringent cost cutting is expected to boost profitability in 2021.

Price and Consensus

Price Consensus Chart for Eventbrite
Price Consensus Chart for Eventbrite

This company is expected to post quarterly loss of $0.39 per share in its upcoming report, which represents a year-over-year change of +77.2%. Revenues are expected to be $24.56 million, down 50% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Eventbrite, the consensus EPS estimate for the quarter has been revised 49% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on EB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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