Stock of the day: Meta Platforms
01 February 2023
Earing season in the USD accelerates and today, META will present its earnings. Expectations of the EPS are in the medium range and are on the 2.26, while revenue is expected to be high at the 31.53B. Especially in the second case, there is huge room for disappointment.
META awaits the data, which will be published after today’s close, in a bullish mode. Since the end of October, the price is climbing higher almost every week. Currently, we are very close to a major resistance area, and the results of the battle fought here will determine the long-term situation on META.
The key resistance is created by the 23.6% Fibonacci, lows from the third quarter of 2022 (yellow), and the long-term up trendline connecting the lows from 2018 and 2020 (blue). From the technical point of view, we can assume that as long as the price stays below that resistance, the long-term sentiment is still negative. Price coming back above would be a strong buy signal but for that, we most probably need to see an amazing earnings report today.