Meta will announce their earnings after the close. The estimates for its Q1 2023 earnings:
- Revenue: $27.67 billion
- EPS (Earnings Per Share): $2.01
- Advertising Revenue: $26.76 billion
- Family of Apps Revenue: $26.88 billion
- Reality Labs Operating Losses: $3.8 billion
Meta has been focusing on improving its efficiency and cost-cutting measures. The company previously announced layoffs, affecting a significant number of employees, and has been striving for financial discipline.
Having said that, Meta faces challenges, including the losses generated by its metaverse operation (i.e., Reality Labs). Investors will be looking for improvements in this area. Additionally, Meta is expected to overcome the digital ad slowdown of the past year, and early data suggests a potential improvement in the digital ad market, with increased ad spend and positive engagement data on Facebook and Instagram.
Meta shares are trading at $209.62. That’s up $2.07 or 1.00% . For the year, the price is up 76%. The price at the end of the year closed at $120.34.
Looking at the daily chart, although having a stellar year, the price is still well off the all-time high price of $384.33. Having said that, the price is above the 38.2% retracement of the move down from that high at $201.45. That level is close support now. Move below will give sellers more ammunition.
On the top side, the swing high from May 4, 2022 comes in at $224.30. That is just above the high price for the year at $222.11. Move above both would have traders targeting the 50% midpoint at $236.37.
Meta-earnings after the close
Other earnings after the close:
- ServiceNow is expected to announce EPS of $2.04 (up 17.92% from a year ago),with revenues pegged at $209 billion (up 21.29% from a year ago)