We live in a world where content is king and as we make our way towards the imagination age, technology companies look set to take over the global economic market. One of the companies leading the charge of this movement is Facebook. The social media giants own some of the biggest social media platforms in the world, such as Instagram and WhatsApp. With these in the arsenal, the company is perhaps the global leaders when it comes to providing content for the people of today.
The company has a market cap of just over 460 billion dollars, down a 120 plus billion after a very poor showing in Q2 of this year. This is due to the big privacy scandal the company was involved in along with the committee hearing of their CEO and chairman Mark Zuckerberg. The company is also plagued with multiple lawsuits and various other studies implicating it of corrupting the world.
Despite all of this, the company seems primed for growth, with the huge wave of 5G internet hitting the world in the next year. There is also the point of new countries in developing regions getting access to the internet. All of this means that the company is going to grow even more in the next few years. As the earnings date for Facebook approach, we should look at some numbers and determine what the next move should be in a situation such as this.
The earnings calendar
The date of earnings is 30th October, which places it around three odd weeks away from now, putting you in a good spot to make sure all your trading options are ready and you can make a move if the price of the stock falls to what you are willing to buy it at.
One number you need to keep in mind when looking at Facebook is the PMAEA, which is the predicted movement after the earnings announcement. This number is reached when the stock analysts and economists reach conclusive evidence that the stocks indeed are going to move a certain percentage come earnings date. These numbers are very accurate and they into account various factors such as previous performance on earnings date, stock price movement over the past year, history of the company, and the values of the company.
The PMAEA this year is set at around 6%, which puts the strike price at 12%; meaning if the shares of the company ever fall at that number, you should immediately purchase it. Purchasing or making moves at this time is critical, as the volume of trade is very high. During the earnings date and seven days after, the trade volume is around 6-7 times its regular limit.
The company is one of the few which are sure to grow big over the course of the next few years as we approach a time when the internet and content will reign supreme. If you are pondering over an investment, now might be the right time to get your money in for good.