Meta Earnings In Focus Along with the FOMC today we also have big news in US earnings with Meta Platforms reporting its Q4 results today. With the iconic tech stock having suffered a brutal decline in value last year, amidst the worst year for tech stocks since 2008, traders are keen to see how the company fared in Q4. Wall Street is looking for EPS of $2.25 on revenues of $31.55 billion. If seen, this would mark a firm uptick from the prior quarter’s results and put an end to two consecutive quarters of earnings declines. The company recently cut 13% of its workforce at the tail end of last year and traders will be looking to see how this has impacted Meta’s margins.Reality Labs Spending In FocusThe big focus for traders today, however, will likely be on Meta’s Reality Labs spending. The group has been pumping money into VR & AI, holding huge $4 billion losses as of last quarter. Investors were unsettled by this with Meta shares dropping sharply in response. If this figure is seen to have grown over Q4, this will likely weigh on trader sentiment towards the stock, particularly in light of the recent layoffs, sending Meta lower near-term. However, if Meta is seen to have scaled back spending in this area then this might help restore sentiment, lifting the stock near-term.Technical ViewsMetaThe rally off the 2022 lows has seen the stock breaking out of the recent bear channel as well as moving above the 124.28 level. Price is currently stalled into a test of the 157.01 level which remains the key barrier for bulls. A break above here will be firmly bullish, opening the way for a run up to 185.11 next. To the downside, 124.28 remains the key support to note.
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