by Ian Harvey
July 28, 2017
Facebook Inc. (NASDAQ:FB)
Here is an overview of Facebook Inc. after reporting earnings. This options trade was recommended on Monday, July 24, 2017, with the company reporting on Wednesday July 26; producing major potential profits within a very short period of executing the trade.
The Suggestion……from “Earnings Predictions for the Week Ahead”
Facebook Inc. (NASDAQ:FB) -- one of the top performing stocks in the market in recent years, and with the stock up 41% in 2017 alone, investor optimism is running high. The company has been growing earnings at a rapid pace, and analysts see earnings growth of 16.5% year over year for its most recent quarter. Facebook has a strong history of topping estimates.
Option trade to consider: Buy the FB AUG 18 2017 165.000 CALL at approximately $4.90.
After announcing second-quarter results Facebook Inc., the company has proven once again that it can continue to fire on all cylinders.
The world's biggest online social network posted a 71 percent surge in second-quarter profit and a 50 percent jump in mobile ad sales, allaying investor concerns that ad revenue growth was peaking as it runs out of space to display ads.
Facebook's second-quarter revenue was $9.32 billion, up 45% from the year-ago quarter. On average, analysts were expecting revenue of $9.2 billion. Facebook's EPS was $1.32, up an incredible 71% year over year. This crushed a consensus analyst estimate for EPS of $1.13.
Meanwhile, Facebook narrowed its expense and capital expenditure guidance for the full year toward the lower end of its previously provided ranges. Facebook now expects expenses in 2017 to increase 40% to 45%, down from a previous range of 40% to 50%. Management also said it expects its capital expenditures to be at the low end of its $7 billion to $7.5 billion forecast for the full year.
Shares of Facebook touched a record high on Thursday on the back of overwhelmingly positive quarterly results, adding more than $27 billion to its market value.
Shares rose 6 percent to $175.49 in early trading, adding gains worth twice the market capitalization of rival Twitter Inc.
Within four days this trade produced a potential profit of 127%!
ACTION TO TAKE
The results say it all!