Meta Stock Gets Halo Lift Ahead of Key Earnings Report

Big Tech stocks are on the rise today

Digital Content Manager
Jul 27, 2022 at 12:10 PM
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With tech stocks on the rise today, thanks to post-earnings pops from the likes of Microsoft (MSFT) and Alphabet (GOOGL), Facebook parent Meta Platforms Inc (NASDAQ:META) is getting a halo lift. Despite an earnings miss from both companies, investors are confident that these tech giants will be able to weather an impending recession. META was last seen up 4.8% at $166.76, just ahead of the Big Tech firm's own earnings report, which is due out after the close this evening. 

Meta Platforms is expected to report profits $2.59 per share for its upcoming second-quarter report. A closer look shows a rocky couple of years for META, as far as earnings go, with just three of its past eight next-day moves finishing positive. The security also has a history of outsized post-earnings swings, including a 17.6% pop during its April report, and a 26.4% drop in February. Regardless of direction, META has averaged a 9.5% move the day after these reports, which is smaller than the 14.1% swing options traders are pricing in this time around. 

Speaking of options traders, META's have been more call-heavy lately. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.81 calls have been picked up for every put during the last 10 weeks. Meanwhile, short interest has been trending lower, falling 9.6% in the last reporting period. 

Analysts have also remained bullish. Of the 29 in coverage, 21 call the equity a "buy" or better. Plus, the 12-month consensus price target of $276.41 is a 65.8% premium to current levels. 

On the charts, the security's more than 50% year-to-date drop is staggering compared to many of its sector peers. The equity looks to have found some support at the $160 level, but has been struggling with a ceiling at the 70-day moving average since mid-January. However, depending on tomorrow's response from investors, META could snap a three-month losing streak, as it's clung to a 3.3% lead for July. 

meta july 27

 

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