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A photograph taken during the World Economic Forum (WEF) annual meeting in Davos on January 19, 2025, shows the logo of Meta, the US company that owns and operates Facebook, Instagram, Threads, and WhatsApp. (Photo by Fabrice COFFRINI / AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images) AFP via Getty Images Meta Platforms is scheduled to report earnings after Wednesday’s close. The stock recently hit a record high near $796.25/share and is currently trading near $746. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting: Earnings Preview The company is expected to report a gain of $6.61/share on $49.34 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $7.21/share. The Whisper number is the Street's unofficial view on earnings. Charts & Data Courtesy of MarketSurge Inc. Charts & Data Courtesy of MarketSurge Inc. A Closer Look At The Fundamentals The company has grown its earnings nicely over the last several years. In 2020 the company earned $9.78. In 2021, the company earned $13.77. In 2022, earnings fell to $8.59. Then, in 2023 earnings soared to $15.56. In 2024, earnings jumped to $23.86 and are expected to grow to $28.29 in 2025. In 2026, earnings are expected to grow again to $30.19. Meanwhile, the stock sports a price to earnings ratio of 27 which is around the same (1x) the S&P 500. A Closer Look At The Technicals Technically, the stock is acting strong and is building a new bullish base after recently hitting a fresh record high. Currently, the stock is trading around 6% below its all-time high which is bullish considering it was down double digits from its record high earlier this year. Near-term support is the 50 day moving average (DMA) line and then the 200 DMA line. The stock can easily gap up and that’s what the bulls want to see after earnings are announced. Conversely, the bears want to see it gap down and fall. Company Profile Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California. Pay Attention To How The Stock Reacts To The News From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape. Disclosure: The stock has been previously featured as a leading stock on my stock market membership site: FindLeadingStocks.com Editorial StandardsReprints & Permissions
