Facebook (FB, $307.10) stock jumps on Q1 earnings beat
Facebook shares rose +5% after-hours trading on Wednesday, as the social media behemoth beat first-quarter earnings expectations.
The company’s net income came in at $3.30 per share, compared with $2.37 per share expected by analysts polled by Refinitiv. Earnings were $1.71 per share in the year-ago quarter.
Revenue surged +48% year-over-year to $26.17 billion in the quarter, vs. $23.67 billion expected by analysts.
Daily active users (DAUs) of 1.88 billion was close to the 1.89 billion forecast (based on FactSet data). Monthly active users (MAUs) was 2.85 billion vs. 2.86 billion forecast by FactSet. Average revenue per user (ARPU) came in at $9.27 vs. $8.40 forecast by FactSet.
Advertising revenue was $25.44 billion, soaring +46% year-over-year, on the back of a +30% year-over-year increase in the average price per ad and a +12% rise in the number of ads delivered.
FB in upward trend: price expected to rise as it breaks its lower Bollinger Band on April 20, 2022
FB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 34 of 46 cases where FB's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 74%.
Current price $198.62 is below $254.20 the lowest support line found by A.I. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -7% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -3%.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where FB's RSI Indicator exited the oversold zone, 21 of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 66%.
The Stochastic Indicator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +5.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where FB advanced for three days, in 222 of 327 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Momentum Indicator moved below the 0 level on May 12, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on FB as a result. In 54 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 61%.
The Moving Average Convergence Divergence Histogram (MACD) for FB turned negative on May 11, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 26 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 57%.
FB moved below its 50-day Moving Average on May 05, 2022 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for FB crossed bearishly below the 50-day moving average on April 22, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 73%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.
The Aroon Indicator for FB entered a downward trend on May 06, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 86%. During the last month, the daily ratio of advancing to declining volumes was 1.04 to 1.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. FB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 69 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 70 (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 70 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.363) is normal, around the industry mean (17.641). P/E Ratio (15.060) is within average values for comparable stocks, (50.361). Projected Growth (PEG Ratio) (1.205) is also within normal values, averaging (4.062). Dividend Yield (0.000) settles around the average of (0.021) among similar stocks. P/S Ratio (4.688) is also within normal values, averaging (96.541).
Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.
The average market capitalization across the Internet Software/Services Industry is 37.8B. The market cap for tickers in the group ranges from 1.1K to 1.5T. GOOG holds the highest valuation in this group at 1.5T. The lowest valued company is MSEZ at 1.1K.
- 5/12/22 5:38 AM: Meta Platforms (FB, $188.74) saw a $93.8B market cap decrease this week
- 5/6/22 5:04 AM: Meta Platforms (FB, $208.28), market cap dropped by $40.9B
- 4/30/22 6:01 AM: Meta Platforms (FB, $200.47) saw a $58.7B market cap increase this week
The average weekly price growth across all stocks in the Internet Software/Services Industry was -3.92%. For the same Industry, the average monthly price growth was -12.83%, and the average quarterly price growth was -5.71%. NIROF experienced the highest price growth at 58.84%, while PRSNF experienced the biggest fall at -38.8%.
- 4/29/22 5:52 AM: Meta Platforms (FB, $205.73) was a top weekly gainer, with a +9.39% jump
- 3/25/22 6:10 AM: Meta Platforms (FB, $219.57) was a top weekly gainer, with a +5.64% jump
- 3/18/22 7:14 AM: Meta Platforms (FB, $207.84) was a top weekly gainer, with a +6.47% jump
The average weekly volume growth across all stocks in the Internet Software/Services Industry was 23.5%. For the same stocks of the Industry, the average monthly volume growth was 16.55% and the average quarterly volume growth was 101.71%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 56%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.15.
10 stocks in the group of tickers exhibit a similar negative trend based on the TrendMonth indicator with an average likelihood of 66%.
The average market capitalization across the group is 10.2B. The market cap for tickers in the group ranges from 299.1M to 39.1B. BIDU holds the highest valuation in this group at 39.1B. The lowest valued company is EGAN at 299.1M.
The average weekly price growth across all stocks in the group was -1.8%. For the same group, the average monthly price growth was -19.06%, and the average quarterly price growth was -27.53%. ANGI experienced the highest price growth at 24.09%, while MSTR experienced the biggest fall at -30.48%.
- 5/14/22 4:23 AM: Angi (ANGI, $5.1) was a top weekly gainer, with a +24.09% jump. Expect an Uptrend continuation
- 5/6/22 5:04 AM: CoStar Group (CSGP, $61) was a top loser this week, declining -6.81%
- 5/4/22 8:26 AM: VNET Group (VNET, $6.5) was a top weekly gainer, with a +24.76% jump
The average weekly volume growth across all stocks in the group was 16.71%. For the same stocks of the group, the average monthly volume growth was 137.7% and the average quarterly volume growth was 66.02%
- 5/13/22 4:49 AM: The volume for MicroStrategy stock increased for one day, resulting in a record-breaking daily growth of 724% of the 65-Day Volume Moving Average
- 5/11/22 7:39 AM: The volume for MicroStrategy stock increased for one day, resulting in a record-breaking daily growth of 261% of the 65-Day Volume Moving Average
- 3/19/22 4:44 AM: The volume for Baidu stock increased for one day, resulting in a record-breaking daily growth of 259% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows