Twitter reported encouraging earnings results. Cisco's earnings beat estimates, but revenue declined for the fifth quarter in a row.
Facebook: big earnings, bigger problems
Facebook reported its fourth-quarter results on Wednesday. The company’s earnings came out at $3.88 per share versus the forecast of $3.22 per share. Facebook’s revenue has also beaten estimates with $28.07 billion vs $26.44 billion. Other key indicators, such as daily/monthly active users and average revenue per user were also marginally better than expected.
Why is it important?
Facebook stock is among the so-called FAANG stocks or the stocks of the US technological giants. On the one hand, the latest numbers look good. On the other hand, the looming changes in Apple’s iOS 14 and a reversal in pandemic trends may hurt Facebook’s advertising business. In addition, although Facebook benefitted from a shift toward online commerce and products during the pandemic, this trend may moderate or reverse.
What does it mean for traders?
The market’s reaction to the release was negative. The stock has been failing to reach new highs since August when it got as high as $304.62. Once again, it turned down from the resistance. Although the uptrend may resume after a long weekly consolidative pattern on the W1, the Facebook stock may correct down to 246.00 first. Good thing that by trading Facebook CFD, you can open sell trades as well.
You can also trade Facebook stock with FBS Trader mobile app. Remember that stock trading starts as the US session begins (at 16:30 MT time).
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded Metatrader 5 or FBS Trader app. FBS allows you to trade stocks only through this software.
- Open the MT5 account in your personal area (an account in FBS Trader).
- Start trading!
Stocks rise and drop on their earnings reports. Let's review those which reported recently.
If you only you entered position with these stocks a month ago.. See the article and see what you'd have by now.
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.
The Reserve Bank of Australia will make a rate statement on March 2, at 5:30 MT time.