Analysts Look Forward to Facebook’s Results Today

Facebook (Nasdaq:FB) will report fourth-quarter 2019 results on Wednesday, January 29, after market close. The company is expected to have generated $28.9 billion in revenue and post $2.52 of earnings per share. Facebook stock recovered during 2019 after a weak 2018 for the company due to regulatory investigations and multiple data leakage issues. Although Facebook’s problems are far from over and CEO Mark Zuckerberg warned about the difficult upcoming year, the company continues to be stable in its revenue flow. Facebook announced that new users are still added to their apps and that as many as 2.8 billion people already use at least one of their services on a monthly basis.

Nevertheless, investors are expecting the CEO to announce what the company’s revenue cuts will be based on the upcoming tighter regulations during the US presidential election later this year. For the previous quarter, the company reported $2.38 earnings per share and $16.91 billion in revenue. Investors are now expecting better results; however, profits could also be affected by the spreading of deadly coronavirus which already results in slower global growth across the board.

The technical analysis today reveals a short bearish signal: Facebook (FB D1) :

Since April 2019 whenever the share price has gone above the RSI Indicator overbought zone (level 70), it makes a correction to at least level 30 of the indicator. According to the outlined recurring pattern, the price entered the overbought zone on January 13 this year and started adjusting back. The correction will reach RSI Level 30 when the price potentially drops to levels around 190$ per share. We will monitor closely how the stock price reacts during the trading session today and tomorrow after the announcement of the Q4 2019 results.