PARIS, FRANCE - OCTOBER 29: In this photo illustration, the Meta logo is displayed on the screen of ... [+]
Meta Inc. scheduled to report earnings after Wednesday’s close. The stock hit a record high of $531.49/share in 2024 and, as of this writing, it is currently trading near $489. 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 $4.32/share on $36.15 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $4.51/share. The Whisper number is the Street's unofficial view on earnings.
A Closer Look At The Fundamentals
The company has grown its earnings by triple digits year over year in the last two quarters. In the quarter ending Dec 31, 2023, the company earned $5.33 compared to $1.76 in the same quarter in 2022. That is a jump of 203%. In the quarter ending September 30, 2023, the company earned $4.39 vs $1.64 in the same quarter in 2022. That is a jump of 168%. On an annual basis, the company earned $15.56 in 2023 and is expected to earn $23.96 in 2024 and $26.42 in 2025. That is a 54% year over year 2024 vs 2023 and then another 10% higher in 2025 vs 2024. Growth investors like to see strong earnings growth.
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A Closer Look At The Technicals
Technically, the stock is trading around 8% below its 52-week high and currently trading near its 50 day moving average line. The stock is not that far away from its all-time high of $531.49. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall.
Company Profile
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide.
It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.
The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California.
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 featured on FindLeadingStocks.com
