Facebook’s parent continues its relentless price surge ahead of earnings.
META – Daily Chart
META trades at just below $400, and we must be close to seeing a medium-term high in the stock. The company traded below $100 in October 2022 and has surged 400%.
Meta Platform releases its latest earnings after the market closes on Thursday, allowing traders to plan ahead of the Friday opening and see how the stock trades after hours.
Last quarter, Meta reported revenue of $34.1 billion, up 23% year over year, beating analysts’ expectations by 2%. It was a mixed quarter for the company, with slower revenue guidance for the next quarter.
However, the company beat analysts’ quarterly revenue and EPS estimates, driven by better-than-expected monthly active user growth. The company reported 3.96 billion monthly active users, up 6.7% yearly.
For the current quarter, analysts expect Meta’s revenue to grow 21.8% yearly to $39.17 billion, beating a 4.5% year-over-year decline in the same quarter a year ago.
Analysts expect Meta to grow earnings at 19.98% a year over the next three to five years, a strong growth rate for a large company. That will be the critical metric for the company as it is getting expensive at a price/earnings ratio of around 30x.
However, analysts are pinning their hopes on the company being able to monetize its Reels platform, a rival to TikTok, and Threads, a rival to Elon Musk’s X.
