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- 1 META Stock fell by 5.18% in a week and rallied 106.49% in six months and 137.43% YTD.
- 2 Meta Platforms Inc. will release the Q2 earnings report on July 26, 2023, after market hours.
Meta Platforms Inc. (NASDAQ: META) will report its Q2 earnings on July 27, 2023, after the closing bell. META Stock is down by 5.18% in a week. However, earlier this month, Meta, in an attempt to challenge OpenAI, revealed a ChatGPT competitor known as Llama 2, and they are releasing it for free. It could be used for research as well as commercial use.
Meta Platforms Inc. (META Stock): Financial Analysis
On July 18, 2023, Mark Zuckerberg said that Meta is partnering with Microsoft; this collaboration would introduce the next generation of its AI language model—a scenario that would make the Llama 1 free for commercial use and research. Moreover, Qualcomm would release a chip that would allow Meta’s AI to run on mobile devices.
The recent buzz around AI caused Nvidia’s market cap to touch a Trillion dollars. Meta is gaining handsomely recently and surpassing the 14% jump in S&P 500 Index. The management also tried to lower the 2023 expense guidance, recently from $92 to $86 Billion. Thereby, increasing the financial standing of the tech giant, Meta.
Also, Meta’s launch of Twitter rival Threads has already surpassed the mark of 100 Million users, ranking as one of the fasted adopted apps of all time. Investors argue that if Meta can properly monetize this new app, the revenue could fill in with high numbers, adding around $2 to $3 Billion.
The tech giant has to fill the gap of $13.7 Billion lost in 2022 by Meta’s Reality Labs in building the metaverse.
Meta Platforms Inc. (NASDAQ: META): Technical Analysis
At press time, Meta Stock is trading at $291.61 with a drop of 0.90%; previous close and open were at $294.26 and $295.78, respectively. The 52-week range is from $88.09 to $318.68, indicating a long way to cross the upper limit. With an average volume of 27.74 Million shares, the market cap is at $747.318 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 37.82, indicating the overvalued stock price. At the same time, the (TTM) earnings per share (EPS) is $7.71, showcasing strength. Analysts placed a 2.78 rating for moderate buy and estimated a price target at $274.20 with a downside of 6.0%.
Meta reported its last earnings on April 26, 2023, where the reported revenue of $28.645 Billion surpassed the expected value of $27.669 Billion by 3.53%. Compared to the previous quarter, the revenue swelled by 2.64%.
At the same time, reported earnings of $2.20 per share exceeded the estimations of $2.021 by 8.86%, compared to the previous quarter, which fell by 19.12%.
The subsequent earnings will be reported on July 26, 2023, after the closing bell, where the revenue is supposed to be around $31.078 Billion, while earnings are to be about $2.909 per share.
In the last 12 months, Meta has surpassed the earnings estimates by an average of 25%. Considering the sales forecast for Meta, it should be around $31.08 Billion.
The year-over-year (YoY) quarterly revenue growth is 2.60%; the total cash in hand at the end of the most recent quarter (MRQ) is $37.44 Billion, while the total debt (MRQ) is $28.66 Billion.
Meta Platforms Inc. (META Stock): Candle Exploration
There has been a steep rise in META’s share price since the beginning of 2023, gaining 137.43% YTD. A gap was created during February 2022 earnings. Although the recent price action filled the gap, the recent drop caused the price to brush the upper levels of the range. If the price drops further, it may be fearing subpar earnings. It shall bounce off the ascending trend line then.
The northbound trajectory of EMA hints at a rally, but stooping RSI at 49.74 foreshadows a drop. However, considering the bullish movement of 2023, the drop should be minimal. Experts argue that a strong bullish momentum can be seen if the price crosses the supply zone.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
