Facebook, Weekly
Today, (Thursday, October 29), after the market closes, Facebook will issue their third quarter earnings report.
Zacks Investment Consulting has forecast earnings per share of $1.93 per share, up 0.5 percent in the last 30 days, but down 9 percent from the third quarter last year, with revenue of $19.81 billion, an increase of 12.2% from the figure reported in the previous quarter.
The Seeking Alpha forecast for EPS (earnings per share) is also $ 1.91 (down 9.9% Y / Y) and the general earnings estimate is $ 19.78 (+ 12.1٪ Y / Y).
Regardless of any crises, negative news and various reports, over the past 2 years, the company has met all EPS estimates as well as 75% of public revenue estimates. Please check out the image below from Zacks.com.
Monthly advertising revenue and active users, what should be considered more in today’s report.
Facebook, like many other online businesses and platforms, has taken advantage of the current crisis and people being ordered to stay home. Advertising is the company’s highest revenue, and in recent months, given that many companies are using more online opportunities, we should see an increase in revenue in the third quarter. Although recent sanctions on many companies are sure to have a direct impact on advertising on the company’s operating systems, including Instagram, more than 2.70 billion monthly active users (MAUs) are expected by June 30, 2020, according to statistics. In many analyses, Data has shown that the user growth trend continues to grow as before, as Zacks estimates 2.701 billion. This figure is equivalent to a 10 to 12 percent increase over the quarterly report of the previous year.
The only issue here is the latest updates from Google and Apple that have banned Facebook from tracking users’ data.
This is so much more than just sharing photos and emotions!
Facebook has added a lot of new services and the company is growing rapidly, which is exactly why the giant will never give in to any crisis.
The latest updates on the FB and Instagram operating systems have included Reels, a promotional game. It has also created more business opportunities, especially in their messengers and FB business, which helps businesses manage both FB and Instagram pages together, in which case they are much easier to manage.
Facebook has also created more online webinars and meetings, where you can create free and paid online classes and movies, with 100% revenue for the creators using iOS, meaning there is no longer a 30% App Store tax. A more competitive environment will be created, but after announcing their partnership with Blue Jeans, GoToMeeting, WebEx and Zoom Video to offer more video conferencing programs, this part of their activity will be even more attractive. (www.businessinsider.com).
Technical Overview – One Week Chart
As we can see in the figure below, after a sharp decline and rapid recovery, the price increased and the stabilization continues exactly on the Gann Grid lines and is still clearly in an uptrend, while the RSI is at 60. The market volume is still growing and the price is higher than all the main lines of moving averages. A positive report could push the price to its all-time high of $305, after breaching the first resistance at $282. Below this level, the September low of $243 is the first support, but bears must experience prices below 100 MA, which is at $210, to control the market.
- 1- https://zephoria.com/top-15-valuable-facebook-statis
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Ahura Chalki
Market Analyst
Hot Forex
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