Facebook Stock Price Outlook: Will Earnings Produce New Highs?

On Wednesday, Facebook reports its second-quarter earnings, in which analysts are expecting a 60% growth in sales from the same period last year to $28 billion. This figure represents a faster pace of growth quarter-on-quarter. 

Facebook produced a near-doubling of its profits to $9.5 billion and a 48% surge in its ad sales in the first quarter of 2021. All this was despite the boycott of Facebook’s advertising platform by nearly 100 brands. This strong performance, and resilience against the slew of antitrust investigations and lawsuits, has left the Facebook stock price at near-record highs.

Presently, the major headwinds to continued advance by Facebook’s stock price are increasing competition from TikTok and similar apps and the U.S. government’s tighter antitrust scrutiny. The latter will not play a major role in Wednesday’s figures. 

What are the possibilities heading into Wednesday?

Facebook Stock Price Outlook

After nearly touching off the 375.49 price resistance on Friday, the Facebook stock price’s advance was halted, leaving the closing price for the week at 369.79. This resistance needs to give way for the Facebook stock price to advance to new highs, at which time 386.27 (227.2% Fibonacci extension) becomes the next barrier in line. An additional obstacle may also come in at 391.89 (241.4% Fibonacci extension) if the price advance continues. 

On the flip side, a pullback following Friday’s intraday rejection tarhets 360.36 (161.8% Fibonacci extension), with 352.28 and 346.65 (141.4% abd 127.2% Fibonacci extension levels) serving as additional downside targets.  

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Facebook: Daily Chart

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