The Closing Print live trading and financial blog during market hours.

Facebook will report quarterly results after the market close today, with advertising revenue and user growth in focus. Will mobile ad-revenue increase or decrease?

For the most part, Facebook has grown faster than most analysts expected. This translates into advertisers, especially in mobile advertising, where the company is the clear leader.

Facebook derives 85% of total ad revenue from mobile advertising.

A recent article in IBD suggests Facebook is ramping up advertising on Instagram but has not yet done so on WhatsApp or Messenger. And analyst price targets range between 195 and 200.

The consensus estimate this quarter is revenue of $9.88 billion, an increase of 40% (+/-) compared to the same quarter a year ago. If FB repeats it will maintain a string of double-digit gains in earnings. We also note that Zacks Investment research is forecasting earnings of $1.29, or 43%.

FB Earnings and the Chart

If investors like what they hear, we see a measured move (MM) of +10 points as a likely target. If price action moves to the 186.74 mark this evening, our target will have been achieved. The downside, if the “sell the news” crowd comes in after hours will likely be cushioned at support around 172.50 (+/-).

Volume the past three sessions suggest institutional buying. MACD and RSI are suggesting higher levels in the short term.
In any case, have a great day. Most stocks we have been trading are higher in the pre-market session.

TSLA reports after the close and Alibaba reports tomorrow before the opening bell.

Happy Wednesday.


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