Earnings Preview: What To Expect From Facebook’s Parent Meta Platforms Today
Meta Platforms Inc. is scheduled to report earnings after today’s close. The stock hit a record split adjusted high of $384.33/share in 2021 and is currently trading near $150/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:
The company is expected to report a gain of $2.12/share on $31.80 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.25/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
Earnings have been declining in each of the past four quarters which is not ideal for the bulls. Earnings soared in 2021 compared to 2020 and they are expected to have fallen by 34% in 2022. Analysts expect earnings to fall by another 11% in 2023. Some people on the Street expect that earnings have bottomed and will begin to grow again.
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A Closer Look At The Technicals:
Technically, the stock has been under a lot of pressure over the past year and it is down around 60% from the bear market high in 2021. The stock is trying to bottom and just had a very big run from $88-$150. Technically, the stock is below its 200 day moving average line and the bulls want to see it get -and stay- above that important moving average.
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.
Disclosure, the stock has been previously featured in my FindLeadingStocks.com newsletter.
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