Facebook’s shares are up more than 5% in after-hours trading after the company reported Q1 2021 earnings of $3.30 per share, which was nearly double the earnings recorded for the same period a year earlier. This figure was also better than the $2.34 earnings per share that had been projected by market analysts.
Revenues grew from $17.74 billion to $26.17 billion; a growth trajectory that exceeded estimates of revenue coming in at $23.71 billion. At the heart of Facebook’s stellar Q1 performance was a rise in advertising revenue, which was seen at $25.44 billion, representing an $8billion growth. Facebook has also seen its monthly active users rise by 10%, with 1 billion people visiting the marketplace each month, according to CEO Mark Zuckerberg.
Forward guidance provided by Chief Financial Officer David Wehner was also positive, with the company expecting revenues in Q2 2021 to either remain stable or to pick up modestly when compared with Q1 2021 figures.
Technical Outlook for Facebook Shares
After hitting as high as 326.80 in after-hours trading, Facebook has violated the 304.69 resistance, with a confirmed breakout allowing bulls to target the 315.88 all-time high. A break above this area allows the stock to aim for the 322.62 and 334.97 price levels (100% and 127.2% Fibonacci extension levels from the swing low of 25 February to the swing high of 22 March.
On the other hand, a retreat from the after-hours highs retests the 315.88 price level, with a decline below this area opening the door for bears to aim for 304.69 and 291.89.