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Facebook Historically Offers Better Post-Market Earnings Trade for Longs

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Facebook ( FB ) is due with its Q1 results in the after-hours Wednesday, April 25, and analysts polled by Capital IQ expect the company to report a profit of $1.33 per share on revenue of $11.41 billion.

Facebook favors cutting back or reversing its moves between its earnings-driven after-hours trade and next-day regular session action, widening in 11 of the 23 quarters since going public, or 48% of the time, and narrowing or reversing in the other 12 quarters, or 52% of the time.

Looking deeper into the performance data, longs see a slim widening trend, with widening events in seven of the 13 quarters where it posted an after-hours gain, or 54% of the time. On the downside, Facebook has seen its earnings-driven evening declines reverse in next-day trade in seven of the 10 negative moves recorded. In the case of downside moves, favoring longs 70% of the time.

The historical post-earnings share performance data follows:

1/31/18 After-Hours: +1.9%; 2/1/18 Reg. Session: +3.3%.

11/1/17 After-Hours: -1.3%; 11/2/17 Reg. Session: -2%

7/26/17 After-Hours: +4.4%; 7/27/17 Reg. Session: +2.9%

5/3/17 After-Hours: -3%; 5/4/17 Reg. Session: -0.6%

2/1/17 After-Hours: +0.6%; 2/2/17 Reg. Session: -1.8%

11/2/16 After-Hours: -6.9%; 11/3/16 Reg. Session: -5.6%

7/27/16 After-Hours: +5.7%; 7/28/16 Reg. Session: +1.3%

4/27/16 After-Hours: +8.9%; 4/28/16 Reg. Session: +7.2%

1/27/16 After-Hours: +12.9%; 1/28/16 Reg. Session: +15.5%

11/4/15 After-Hours: +3%; 11/5/15 Reg. Session: +4.6%

7/29/15 After-Hours: -2.4%; 7/30/15 Reg. Session: -1.8%

4/22/15 After-Hours: -1.9%; 4/23/15 Reg. Session: -2.6%

1/28/15 After-Hours: -1.3%; 1/29/15 Reg. Session: +2.3%

10/28/14 After-Hours: -9.8%; 10/29/14 Reg. Session: -6%

7/23/14 After-Hours: +5.5%; 7/24/14 Reg. Session: +5.1%

4/23/14 After-Hours: +3.8%; 4/24/13 Reg. Session: -0.8%

1/29/14 After-Hours: +12.2%; 1/30/14 Reg. Session: +14%

10/30/13 After-Hours: +0.02%; 10/31/13 Reg. Session: +2.4%

7/24/13 After-Hours: +17.7%; 7/25/13: Reg. Session: +29.6%

5/1/13 After-Hours: -0.1%; 5/2/13 Reg. Session: +5.6%

1/30/13 After-Hours: -4%; 1/31/13 Reg. Session: -0.8%

10/23/12 After-Hours: +10.6%; 10/24/12 Reg. Session: +19.1%

7/26/12 After-Hours: -9.8%; 7/27/12 Reg. Session: -11.7%

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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