Meta Platforms Inc. (formerly Facebook), is scheduled to report earnings after today’s close. Facebook hit a record high of $384.33/share in 2021 and is currently trading near $322/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a gain of $3.78/share on $33.38 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.96/share. The Whisper number is the Street's unofficial view on earnings.
A Closer Look At The Fundamentals:
The company has enjoyed robust double and triple digit earnings growth over the past four quarters which is a very healthy sign, especially for a company this big. Shareholders are also happy to see revenue grow by double digits in each of the past four quarters. The company is well positioned for growth in the future especially because Alphabet (Google’s parent) just gapped up after reporting strong earnings. That bodes well for Meta Platforms.
A Closer Look At The Technicals:
The stock is in a downtrend after the stock hit a fresh record high in September 2021. The bulls want to see the stock gap up (big) after reporting earnings and the bears want to see it gap down. If the stock gaps up that will be a very bullish. Alternatively, if it gaps down that will not be received well.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: Meta Platforms has been featured in the FindLeadingStocks.com Model Portfolio
