META – Daily Chart
The price of META is close to the all-time high set around the $600 level in October. Support comes in at $542.70 and $531.90.
The Meta release is also important as it comes at the same time as Microsoft, which will make Thursday and Friday important for the S&P 500. Wall Street analysts anticipate another strong quarter of growth in earnings and revenue for the Facebook parent.
Growth is expected in AI-driven ad optimization and effective cost-control measures. Earnings per share is expected to hit $5.21, which would be an 18.7% increase from a year ago. Revenues are expected to reach $40.19 billion, reflecting a 17.7% year-over-year increase.
Despite analysts’ hopes, there are doubts about recent website traffic data. TipRanks’ Website Traffic Tool indicates a decline in traffic for Q3, both sequentially and year-over-year. The data also suggests a -8.6% drop from last year’s Q3, and -5.5% lower than Q2.
Like other companies in this earnings cycle, Meta’s AI spending will be watched closely after the company spent a lot of money on the metaverse and its VR headsets, which have not seen mainstream adoption.
Options pricing data expect to see a move of around 8% in Meta stock around the earnings release.