Meta Platforms (META, Financials) is a social media and digital advertising company that's entering second-quarter earnings on the heels of its longest losing streak on record.
Shares had declined for nine consecutive sessions, down more than 12% from an intraday high of $681.90 in July to $593.41 before the announcement.
Meta is also below its 50-day, 100-day and 200-day moving averages and its 14-day relative strength index (RSI) is at 43, indicating momentum is waning. The option traders are pricing in roughly a 6.95% swing either way following the conclusion, so that suggests a lot of volatility is expected.
Wall Street expects Meta to post earnings of $7.40 per share on $60.29 billion in revenue. Investors will be looking for demand for AI-powered advertising solutions, capital spending and whether infrastructure investments are starting to provide quantitative returns.
Forward guidance could be just as significant as the quarterly numbers, particularly after the recent slide in stocks. Investors will be looking to see if Meta can reverse its losing streak and regain faith in its ambition to invest in AI.