Facebook (FB) Stock Looks to Extend Recent Gains on Q1 Report

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Social media leader Facebook (FB) reports Q1 numbers April 24 after the market close. Analysts expect earnings of $1.65 on sales of $14.96 billion, versus $1.69 on revenue of $11.7 billion during the same period last year.

Technical Analysis

FB stock was recently trading at $177.76 down $40.86 from its 12-month high and $54.74 above its 12-month low. InvestorsObserver’s Stock Score Report gives FB a 59 long-term technical score and a 64 short-term technical score. The stock has recent support above $160 and recent resistance below $185. Of the 33 analysts who cover the stock 24 rate it Strong Buy, 4 rate it Buy, 5 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, FB gets an overall score of 68 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

After a tough year filled highlighted by a data privacy scandal during the last presidential election, Facebook has bounced nicely in 2019 with shares currently up 35% on the year. Facebook remains the only real competitor to Google’s dominance in online search, and with multiple platforms that the company is just starting to monetize Wall Street will likely maintain a bullish stance on the stock. Facebook boasts around 2.3 billion active monthly users, which will continue to attract advertisers and grow the bottom line. Earnings are up 50% annually over the last five years, and analysts see additional annual growth of 16.5% for the next five years. FB stock has a decent valuation with a forward P/E of 20. Facebook has posted a positive earnings surprise each of the last four quarters, and the street expects another beat with a whisper number of $1.74 for a $0.09 beat. Analysts have an average price target of $196.32 on the stock.

About Facebook Inc.

Facebook is the world's largest online social network, with more than 2 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Facebook refers to this as Facebook Watch. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktop. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada, and 25% from Europe. With gross margins above 80%, Facebook operates at a 40%-plus margin.

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