What To Expect From Facebook Today

Facebook Inc.
FB
is scheduled to report earnings after Wednesday’s close. The stock just hit a record high of $377.55/share in 2021 and is currently trading near $373/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 earnings of $3.03/share on $27.82 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.48/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company has done a remarkable job growing in recent quarters and years. In 2014 the company earned $1.10 and in 2021 it is expected to earn a whopping $13.14! In fact, the company managed to grow both its revenue and earnings by double digits in each of the past four quarters! That is very impressive considering how large the company is right now.

A Closer Look At The Technicals:

Technically, the stock is very strong as it continues to hit fresh record highs week after week. In the short-term, the stock just bounced nicely off its 50 DMA line and just hit a fresh record high. Facebook IPO’d in 2012 and the stock has been up every single year since except it was lower in 2012 and 2018. That means it only has had two losing years since 2012! That is tells you how strong the institutional demand is for the stock right now.

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.