Meta is expected to report earnings of $2.26 on revenue of $31.5bn today after the market closes. Tough resistance sits at $153.18

Financials 

In Meta’s fiscal year finishing in December 2021, the company reported a total of $118bn in revenue with a gross profit of $95bn. That is a 37% increase year-on-year across both. Still impressive to say the least, considering the value lost in 2022 and since Meta been pumping enormous sums into the development of ‘MetaVerse’. Post tax and operating expenses, profit sat at $37bn with an EPS of $13.99. Looking at the balance sheet, numbers remain strong if we compare to previous years. Total assets rose to almost $166bn with $48bn in cash on hand, meanwhile total liabilities also grew by $10bn to equal $41bn. However, Meta’s cash on hand has seen a decline of $14bn and due to the bigger increase in liabilities versus assets, equity did decrease by $4bn. Overall, the financials are solid and the future outlook is that Meta should continue this way. This outlook would only be reviewed if significant losses were to occur consecutively over the next 3-5 years.    

Technicals

Meta is expected to report earnings of $2.26 on revenue of $31.5bn today after the market closes. At present, its stock is trading at around $147.10 a share. Support levels are resting firmly below at $142.22 (along the dotted trendline) then at $140.32 then a key level at $135 (along the green trendline). A break below the green trendline could see a slump towards the $125-$130 price range in the mid-term. Towards the upside, tough resistance sits at $153.18. A break above this point may see the price hike towards $160-$170. Taking a look at the technical indicators, they are both positive but RSI practically suggests that the stock is ‘overbought’ as it reads 69.9.