Meta Q4 Stock Earnings Preview: What to Expect?
Meta Q4 Stock Earnings Preview: What to Expect?
By:Mike Butler
Meta's AI plans and impact on investments already made will be a focal point for this earnings call
- Meta is set to report quarterly earnings Feb. 1 after the market closes
- Analysts expect Meta to report earnings per share of $4.96 on $39.14 billion in revenue.
- The expectations for Meta are sky high after an 82.84% EPS beat last quarter, and a higher EPS expectation this time around.
Expectations are high as Meta Platforms (META) prepares to report Q4'23 earnings Feb. 1 after the market closes, and or the second largest digital ad platform. After blowing through earnings-per-share (EPS) projections last quarter, the bar is set loftier this time. Analysts expect EPS of $4.96 on $39.14 billion in revenue.
META stock hits $400
META stock has had a massive rally from the recent low of $279.40 realized on Oct. 26, with a current stock price of $400. The current stock price expected move based on implied volatility of the weekly options cycle sits at +-$26.66, which equates to 6.6% of the current stock price.
The weekly expected stock price move makes up 57% of the expected stock price move through the April 2024 cycle. That means this earnings announcement has a big weight on future projected movement. Experts expect fireworks on Thursday after the market closes. Whether the stock rallies to new highs or erases some of this recent rally will be realized in a matter of days.
Bullish on Meta for earnings
There are a lot of positive narratives for Meta in 2024 from an advertising demand standpoint. We have the Paris Olympics this summer and U.S. election later this year should help.
These are mega-tier events and businesses will surely increase digital ad spending around these events. The artificial intelligence (AI) boom is happening in the middle of all this. Just like all other mega tech stocks, Meta has made investments in the AI space.
Meta exceeded EPS and revenue expectations three quarters in a row, and many analysts believe this is just the beginning for Meta's positive run in 2024. If Meta can exceed expectations yet again and paint a bullish picture for the rest of the year, we may see the stock price rally after earnings.
Bearish on Meta for earnings
Heightened expectation comes with heightened pressure as well. If Meta falters in EPS or revenue areas, we may see the stock fall from new highs.
It's hard to see a bearish sentiment with so much opportunity for the digital ad giant in the next few months, but a selloff in the stock price after earnings could come at the hands of an earnings miss for Q4'23.
All eyes will be on META stock on February 1 after the market closes. Join us on Options Trading Concepts Live at 11:00 a.m. Central Time on Thursday for an in-depth look at options trading strategies for the earnings announcement.
Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb
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