Let's talk about meta's earning report. What's going on team. It's's ricky with tackle solutions. I hope that you guys are all having an amazing before we get into the uh facebook previously known as facebook now metaverse earnings uh quickly want to update you guys on the federal reserve fomc meeting we live streamed it uh when it was actually announced it's a pretty long live stream.

It's actually the video that i uploaded right before this if you don't have time to watch that entire live. Stream a quick little summary of it they raise interest rates once. Again. 075.

This is the second time uh that they've raised interest rates. Uh three quarters of a percent uh and also the guidance. When jerome powell began to speak and answer questions. The biggest takeaway in my opinion uh was him speaking about not being afraid or it not not being an option of raising interest rates more than.

075. The question has been would the federal reserve raise interest rates a full basis point which would mean 100 points overall. He said. That it's not out of the question so uh also a quick little update in the month of august.

There will not be a federal reserve fomc meeting they're going to meet once again in. September so if we continue to see inflation has not peaked at 91. Percent. As of the month of june.

Then it wouldn't be much of a surprise. If they take an even more aggressive approach than even that full basis point. So just wanna make sure that you have an understanding of uh. Why the market reacted the way that it did i'm gonna start sharing my screen.

So you can see exactly what it is that i'm looking at meta is down 45. After market hours. And then you know being completely honest. That's actually not as bad as what i originally thought.

It was going to or how it was going to play out. But let's talk about their earnings. So let's go ahead and go right on over here. What was reported so again for those that are a little bit newer to the stock market trust.

Me we all start knowing nothing right so. Please. If you have any questions. You can either comment down below or the first link in the description of this video you can send me a direct message within our free trading group chat.

So i want you to know that you have access to me if you want to uh when it comes down to the quarterly earnings uh. This is based off of q2 which is the um right now we're in q3. But again. The q2 has to complete and then they report in in a pro rated weight right so we got q2 their expectation for their.

Eps which is an abbreviation for earnings. Per share their expectation was. 255 and they reported a. 246 this was their biggest miss out of their q2 earnings missing by 36.

Their revenue. Which is again one of the biggest things was an expectation or market expectation of. 2895. Billion they reported 2882.

Billion and they contribute a big portion of that of the 10 billion that they had to pay toward a t due to that restriction of asking users if it's okay to collect their data for their q2 right so one of the things that i want to talk about is not only did they miss their earnings. But they also set kind of just like very realistic expectations they're very straightforward. With you know things are not to get better anytime soon for two specific reasons. And this is what i wanted to i wanted you guys to understand especially with apple and amazon reporting earnings tomorrow which i will be live streaming on my youtube channel for free so please make sure that you subscribe.

But what i wanted you to understand is that earnings is or the earning report is part of what's important when a company reports earnings. But the second sometimes is even more important and that's their guidance call when the actual executives jump on a call and set expectations for the quarters that are to come. The reason. That is so important is they can have an amazing previous quarter.

They can be all of expectation and i'm sure you've seen this before. But their guidance. If their guidance is low or their guidance is bad for the up and coming quarters. Then you can see that although they might have had a positive previous quarter for up and coming quarters.

If it doesn't look good based off of guidance. Then that actually does more harm than good. And this is why sometimes you can see a stock drop even when it beat expectation. I want you to understand this especially not just with today.

But also with up and coming earning reports with that being said what they announced was that a big portion of what's eating up a lot of their revenue is the cash flow. That's going into the metaverse and i mean quite frankly like for the up and coming quarters. They did already set expectation to uh for revenue to be around 28 billion dollars. If i'm not mistaken and with that being said those are not very aggressive numbers.

So they would expect numbers to even go down even further based off of current expectations due to macro economic reasons. This is what every tech company is talking about right now with raising interest rates obviously making it more expensive to borrow money people spending less money advertisers spending less money due to the restriction of a lot of these applications. No longer able to collect data because of the restriction that apple put on their devices you have to understand if i'm not mistaken over 90 of the metaverse. Um or meta uh in the way.

That they make. Money is based off of advertisement from their family applications is what they call it known as whatsapp known as instagram and known as facebook. Advertisement is how they make a majority of their revenue. And you can imagine that if a huge portion or a huge pool of those users use apple devices.

And if now apple restricts you to collect their data then advertisers as i'm like if i have a business and i want to run ads to you if i can't collect the data that i need and properly target. My audience then that application becomes less useful for me and therefore. I'm less inclined to spend more money advertising to those users as it becomes less effective. I want you to understand the why why are people spending less because it's less effective and by people spending less than meta versus.

Just like many other advertisement applications. The revenues are down. And also with the idea of the recession right as that's up and coming with raising interest rates. They're slowing down on hiring.

They are cutting back on spending trying to create more cash flow in their balance sheet. And it makes sense right i just i feel like any time. That i hear or i read any of these reports. It sometimes can get very difficult to understand so i just want you to have a better understanding of why it's bad when they set very poor expectations for and coming quarters.

Now one of the last things that i quickly want to talk about is the market's performance. Today. The market had an amazing day one of its best days. I would say for all of 2022.

If i'm not mistaken it would have to be probably top three or top five days. Uh for the overall 2022 for the nasdaq market with that being said metaverse was yes a big focus for today. But also the federal reserve was a big reason on why the market performed so well the federal reserve raised interest. Rates 075.

And if you look back to every previous fed meeting when they raised interest rates. The first day. There's a bull run. The second day meaning the day after there begins to be a sell off now this has happened twice before i can guarantee you twice before.

There was a nice rally and then it literally sells off almost exactly around 10 to 14. The day after now conditions are a little bit different now where again you have the idea of inflation. Potentially peaking. The federal reserve is taking more of an aggressive approach in raising interest rates.

But i just want you to be aware of this so you do your own due diligence and you can look at previous patterns and ask yourself hey you know can the market actually sell off 10 or 14. So tomorrow if you begin to see a lot of selling pressure. I just want to make sure that you're not surprised and that you at least anticipated or at least someone may be aware of why this happens now the last thing that i need to make sure that you guys are aware of is i talked about amazon and apple's earnings tomorrow. Make sure that you're aware of that that's going to be after the market closes as well as one hour before the market.

Opens there's the gdp. Report it's at 8. 30 am eastern time. I will not be live streaming that that is going to be 5 30 am.

My time and i've been really slacking on sleep. And i just don't want to wake up that early because i still have my live training session that i have to do for my uh private. Learn plan profit group so because of that i would rather just go live for them. And then i can make a video publicly later about it.

If you have any questions that you would like to ask me feel free again to either comment down below or send me a message via discord. But i do have to say that that gdp report is very important as it's going to cover q2 uh for the overall well market really so i'm very excited to follow up again tomorrow is going to be one of the biggest days when it comes down to quarterly earning reports. We have amazon and apple. The two biggest tech giants in my opinion um when it comes down to what's to come or what's left for earnings.

Um. If you have any questions again like i said feel free to reach out if you're part of my learn plan profit group you guys know um. You know you need to set your alarms for market. Open.

I'm going to be going live maybe. 5 or 10 minutes before just depending on market conditions. If things are looking bad or if things are looking good depending on market activity. I want to make sure that we capture any big.

Any big movements or any big plays depending on market direction. So again make sure that you set your alarms for market. Open uh again. If you're not part of my.

Learn plan profit group. Just yet. I do trade live exclusively for them every single morning at market open. If you want to learn more about this to see if it's a good fit for you i encourage you to take two minutes click the second link down below and we are running one of our biggest sales.

It's a hundred and a hundred dollars off and if you do join by today you can watch me trade live as soon as tomorrow and yes. It is a one time payment lifetime access and right now it's 100 off. If you decide to join the last thing that i want to make you aware of is the fourth link down below is our shop tech bud site um. We are giving away a free flag with every order today so let's say that you want to pick up one of these wall street shirts.

You add it to your cart. Add your favorite flag to your order and you automatically get the flag for free no discount code needed and again that is at shop shoptechbudscom or the fourth link down below. I really do appreciate you guys time. I hope that it earned your thumbs up please make sure that you subscribe.

If you want to keep up to date with these stock market updates and like always let's make sure that we end the year on our green now take it easy team.