How To Trade Meta Platforms Stock Heading Into Q3 Earnings – Meta Platforms (NASDAQ:META)

Meta Platforms, Inc META will release its financial results for the third quarter after the market close on Wednesday. The stock was trading over 5% lower at the start of the event.

When the tech giant reported its second-quarter results on July 27, the stock closed about 5% down the following day, but then reversed its trend and climbed 16% over the next 10 trading days.

For the second quarter, Meta reported earnings per share of $2.46 on revenue of $28.82 billion. The company missed EPS estimate of $2.61 and estimate of $28.97 billion in revenue.

For the third quarter, analysts estimate that Meta will post earnings per share of $1.91 on sales of $27.53 billion.

Here’s what you should see when meta earnings are printed after the bell.

Ahead of the event, KeyBanc analyst Justin Patterson maintained an overweight stance on Meta, lowering the price target to $175 from $195. Jefferies analyst Brent Thill kept a buy rating on the stock and lowered its price target to $200 from $225.

From a technical analysis perspective, Meta’s stock is likely to trade higher in the coming days to confirm an uptrend, but it should be noted that holding stocks or options above any earnings push is like gambling as stocks are bullish on you can miss profits and bearishly hit a profit.

Options traders, particularly those holding short-term calls or puts, take on additional risk as the institutions writing the options increase premiums to account for implied volatility.

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The Meta Chart: Meta opened on an inside bar on Wednesday to consolidate Tuesday’s 5% gain, but by the afternoon the stock had dipped bearish against the mother bar. Selling pressure started to increase as Meta opened below the 21-day exponential moving average and failed to regain the level as support.

  • Meta is trading in an uptrend, forming the recent higher high on Tuesday at $138.35 and the recent confirmed higher low at the $124.57 level the previous day.
  • If the uptrend is to continue, bullish traders will want to see the Meta form a bullish reversal candle, such as a doji or hammer candle, above $125.
  • The uptrend started on October 13 when Meta hit its lowest level since January 6, 2017 at $122.53. If Meta suffers a bearish reaction to its profit push and breaks below this level, a steep downtrend could occur as there is no current support below the range.
  • Meta has resistance above at $139.75 and $150.74 and support below at $122.53 and $114.77.

See Also: “Metaverse is a word I’ll never use,” says Apple Exec, echoing the Snap founder’s sentiment

Photo via Shutterstock.

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