The publication of quarterly results of another two major technology companies will take place today after the market closes. Facebook (FB.US) shares rose approximately 50.0% over the last 12 months and are currently trading at over $307. Therefore investors are likely to focus mainly on whether Facebook can maintain robust earnings and revenue growth. Analysts expect Facebook to report an EPS of $2.36 on revenues of $23.53 billion. However as Facebook is making most of its money through selling advertising space on its social media sites and apps to marketers then the key factor to watch is growth of monthly active users (MAUs). This metric provides more details on the size of the company's user base. MAUs totaled nearly 2.80 billion at the end of last year as many people were forced to stay at home due to the pandemic, however analysts expect that this trend will fade in 2021. Markets expect that MAUs will increase 8.9% YOY in the first quarter of 2021, which would be the weakest gain since the fourth quarter of 2019 when it reached 7.6%.
Facebook (FB.US) stock bounced off the upper limit of the ascending channel and erased today’s gains, however, in the event of strong quarterly results, an upward move towards the all-time high at $316 is possible. On the other hand, if the results turn out to be disappointing, then the nearest support lies at $295.83. Source: xStatnion5
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Create account Try a demo Download mobile app Download mobile appThe second key company to report after the session is Apple (AAPL.US) which is one of the firms that benefited from the pandemic as millions of users shelter and work at home, which increased demand for iPhone maker devices and services. For the current quarter analysts expect EPS of 98 cents per share on revenue of $76.9 billion. The key metric to look for is services revenue, which is a crucial, high-margin business and a major part of Apple's strategy of diversifying its revenue mix. Analysts expect that in the current quarter services revenue will increase by 17.6% to $15.7 billion.
Apple (AAPL.US) has been trading in a sideways move recently. Perhaps the publication of today's quarterly results will lead to some bigger price moves. Source: xStation5
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