Facebook (NASDAQ: FB) traded 6% higher on Wednesday morning, after posting mixed earnings results compared to Wall Street expectations.
The social media company reported earnings per share of $1.76 and total revenue of $13.7 billion, compared to analyst estimates of $1.46 and $13.8 billion. Daily and monthly active users on Facebook were higher compared to one year ago, however both missed analyst estimates.
Facebook continues to see costs rises, as it dedicates resources to managing risks posed by fraudulent users.
Nonetheless, CEO Mark Zuckerberg explained that, “Our community and business continue to grow quickly, now with more than 2 billion people use at least one of our services every day.”
Our view is rooted in the market cycles in which Facebook’s stock (FB) trades. In analyzing FB, we can see that it continues to trade in the declining phase of its current cycle. We see more near term risk, as the current cycle still has a few weeks left.
As the next cycle begins, we see FB rebounding to near $170 into early 2019, and then we expect the current bear move to resume.
Facebook (FB) Stock Chart with Weekly Bars
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
Twitter: @askslim
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
