Another big tech company released its earnings after hours yesterday – Facebook. The social-media giant delivered more than the market expected on all metrics. As such, Facebook share price advanced after hours to the all-important $250 level. Will it pass beyond resistance once the cash opens?
The Nasdaq 100 index recovered all the losses caused by the coronavirus pandemic and some more. It even posted a new all-time high post the start of the pandemic.
Facebook share price was one of the drivers of the move higher seen in the Nasdaq 100 index. Together with the rest of the big tech companies, it led the index higher, dragging the entire stock market to the upside.
Facebook Q2 2020 Financial Highlights
Facebook share price celebrated in after-hours trading the strong performance in the second quarter. Despite macroeconomic uncertainty, Facebook managed to almost double its earnings per share ($1.80 on expectations of $0.91).
Advertising revenue continued to pour in, despite the fact that many of its clients had to shut down operations for the quarter. What is even more important, as a social media company, Facebook continues to attract users – the daily number of active users continuing to grow every quarter since Q2 2018.
Facebook Share Price Analysis
The stock price jumped after hours to the all-important $250 level. Facebook share price struggled at the area for quite some time now, and the cash opening today will be interesting from a positioning point of view.
For the past two months, Facebook simply consolidated between $210 and $250. Only once it threatened the $200, but investors jumped in and bought the dip.
The daily chart looks like a continuation pattern. Therefore, the trading plan is to buy the cash opening, assuming it remains at $250 and place a stop-loss order at $230 for a 1:2 rr ratio or a $300 target.
Facebook Share Price Forecast