Facebook Q3 Earnings Preview


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Determiner giants! ‌

By: Ahura Chalki

Thursday, October 29th, after market close, FB will announce Q3 earnings results to close the FANG file for this quarter.

Zacks Equity Research EPS is pegged at $1.93 per share, having been revised 0.5% upward in the past 30 days, but indicating a 9% decline from the figure reported in the year-ago quarter, with revenues at $19.81 billion, indicating an increase of 12.2% from the year-ago quarter’s reported figure.

Seeking Alpha estimate for EPS Estimate is $1.91 (-9.9% Y/Y) and the consensus Revenue Estimate is $19.78B (+12.1% Y/Y).

With all respect to any crises, negative news, and reports, over the last 2 years, the company has been beating all EPS estimates as well as 75% of revenue estimates. Check the below figure from Zacks.com, please.

Advertisement revenue and New MAU, What we have to double-check in the report

Facebook also, the same as many other online businesses and platforms, got the advantage of current crises and Stay Home trends. Advertisement is the biggest income of the company and in last months, as more companies using more from the online opportunities, we have to see increasing in this part in the third quarter, same as the second, however, latest sanctions from many companies for advertisement in company platforms, including Instagram, for sure will have direct effect, however over 2.70 billion monthly active users (MAUs) as of June 30, 2020(1) is expecting to grow at least with the same numbers when you check the estimates in many websites, as well as  2.701 billion of Zacks Consensus Estimate. This will be a 10-12 percent increase in the figure reported in the year-ago quarter.

The only issue here is the latest Apple and Alphabet’s GOOGL update, which is limiting the FB from their data to track user’s data.

It is much more than simply sharing the photo and your feeling!

Facebook added many new services and the company is growing sharply, and that’s exactly why this giant, never gives up on any crises and storms.

The latest update on FB and Instagram platforms. other than Reels, which could be an advertising game, it is more business opportunities, especially in their messengers and FB business, which helps businesses to manage both FB and Instagram pages, all in one place and manage it much easier.

Facebook also adding more online meeting opportunities, which uses can create online free and paid classes and videos, with the opportunity of 100% revenues, except if you are using iOS, then you going to need to forget about 30% of your income and App Store Tax, however, it will be created even more competitive atmosphere, however, it is getting even more interested after their announcement of announced a partnership with  Blue Jeans, GoToMeeting, WebEx, and Zoom Video to offer even more video-conferencing apps (www.businessinsider.com).

Technical overview: (weekly Chart):

After a sharp decline and sharp recovery right after that, as we can see in the below figure, price raising and stabilization of levels going on exactly by Gann Grids and it is still in a clear uptrend, while RSI at 60, market volume still growing and price moves above all main MAs. A positive report can send push the price higher towards its historical high of +$305, towards $282 as the first Resistance. Lower than this level also September low of $243 is the first resistance, but for bears to have the control of the market, the price needs to lower under 100 MA at $210

      1. 1- https://zephoria.com/top-15-valuable-facebook-statistics/

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