Facebook Q2 earnings

[MongiIG]

Another strong set of results forecast as analysts remain bullish on stock.

Source: Bloomberg

 

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Kyle Rodda | Market Analyst, Australia | Publication date: Monday 26 July 2021 

When does Facebook report its Q2 results?

Facebook Inc (All Sessions) reports its Q2 earnings after market on Wednesday 28 July 2021 EST.

What to watch out for

Analysts are tipping another bumper quarter from Facebook. Revenue is tipped to grow by 49.1% in the second quarter to $27.58 billion, with the result estimated to translate into an EPS of $3.56. The solid financials are forecast to be driven by further growth in advertising revenues, as higher prices and greater demand from businesses amidst the drive to digitalize in the post-pandemic world feed Facebook’s top-line. Despite expectations of another strong set of results in Q2, there will be some key issues that may threaten sentiment towards the stock this quarter. Ongoing regulatory threats still overhang the future of Facebook, while monthly active user growth may fall due to the re-opening of the US economy in the last quarter.

You can trade Facebook Inc (All Sessions) with IG by creating a trading account or log into your existing account to get started.

Key data going into Facebook’s Q2 results

Financial metrics

EPS	Revenue	EPS growth Y/Y	Trailing P/E
$3.56	$27.58 billion	55.20%	31.63

 

^{Source: Bloomberg}

Analyst recommendations

 

Buy	Hold	Sell	Consensus price target
48	7	3	391.85

 

^{Source: Bloomberg}

Facebook IG client sentiment

Source: IG charts

Facebook technical analysis: bull trend in place as stock breaks to ATH

The technicals remain highly constructive for Facebook shares, hitting new all-time highs in recent days. Owing to strong company fundamentals, expectations of solid Q2 earnings, and a market backdrop that’s becoming increasingly supportive of growth and quality tech stocks, Facebook shares broke key price resistance around $360 last week, after investors took a brief challenge of its 50-day moving average to “buy-the-dip”. Going into this week’s results, the trend looks clearly skewed to the upside for Facebook shares. A hold above previous support and now resistance $360 will be key, before focus shifts perhaps to analysts consensus price target for the stock at $391.85.

Want to trade Facebook?

You can trade Facebook Inc (All Sessions) with IG by creating a trading account or log into your existing account to get started.

Source: IG charts