 Welcome traders to another Tick-Mail Earnings Report preview with me, Patrick Munley. Before we jump into today's report, as always, I want to adhere to the risk disclaimer. Most pertinent to today's presentation is the fact that the views expressed by me are solely mine and they're not indicative or representative of those held by Tick-Mail UK or Tick-Mail Europe Limits. Okay, let's jump into today's report and we are looking at Meta, parents of Facebook, who are set to report earnings after the close of New York trading today. We're looking for an earnings per share of $2.51 on revenue of $28.92 billion. Meta is set to report quarterly results that should provide a clearer snapshot on advertising spending, a core source of revenue for all social media companies. The lack of clarity on that spending is a reason why Meta's stock and that of other social media companies have spiralled downward over the past year. Meta is undergoing a major and costly shift from social networking to the metaverse. It faces several other challenges of likely concern to analysts when the meta earnings report is placed. For example, Meta continues to see revenues decline due to Apple changing its iPhone operating system to reduce ad tracking. It also faces increased competition from TikTok and remains under pressure over allegations of antitrust from Congress. At the same time, decisions on spending remain in flux. Many small and mid-sized businesses are considering new channels away from Meta for the first time. Meta faces challenging economic environments and a daunting geopolitical landscape. Given the sensitivity of advertising campaigns to the vicissitudes of the economy, it's considered that digital ad spending could come under severe pressure. Analysts expect Facebook to report an adjusted income of $2.51 a share, which represents a drop of 30% from a year ago quarter. That is the fourth quarter in a row of decelerating earnings. The estimates of revenue at that $28.92 billion level are slightly down from the $29.1 billion a year ago. In order to shore up profit, Meta has been cutting back on operating expenses. In late June, various media outlets reported that Meta had warned employees to brace for a tough second half as it copes with pressures on its core ad business. Chief Executive Mark Zuckerberg said he anticipates one of the worst downturns in recent economic history. In a separate memo leaked to the press, Chief Product Officer Chris Koch said that Meta would need to execute flawlessly in the environment of slower growth. Meta stock is down just over 22% since it reported its first quarter earnings. Bank of America analysts wrote to investors that potential positives on the second quarter conference call could include more stability than expected in the third quarter outlook. Optimism on reals, monetization ramp progress with ad targeting since Q1 and evidence of slowing Metaverse spending. Separately Goldman Sachs' note positioning is neutral at this stage in terms of their investor profile. Tactical bullish traders are hoping for a second half re-acceleration story which would encourage further investments and potentially that lower expense guide and some signs that IDFA and real headwinds are decreasing. I would note that there is a whisper on the street that we could see an EPS as high as $2.53. Let's take a look at some of the tactical strategies that tend to occur around earnings for Meta. Meta shares have moved lower than the immediate aftermath of earnings seven hours of 12 previous reports. On average, the stock moved down 0.9% on the first day after trading after the company reports. Based on the previous 12 earnings releases, Meta is more likely to trade lower one day after earnings for an average loss of 1.2%. On average, the stock has moved higher 1.4% one week after earnings. Let's take a look at what's expected from volatility perspective. The options market is pricing in about an 11% move on earnings and the stock has averaged 6.7% move in recent quarters. Now importantly, let's look at flow and sentiment. Now there's something I'd like to highlight here which I think is definitely noteworthy. There's been a surge in buying 16,013 contracts of the $200 call expiring this Friday. Obviously the options order flow in general has been bearish. Investor sentiment going into the earnings has 48% expecting the earnings beat. Meta's share price has drifted down 17.7% post earnings announcement. Using the last 12 quarters of data, the average drift between earnings is 2.9%. Let's pull up a chart now and see where we might be able to identify some tactical trading opportunities in the stock. So bearing in mind this is $200 call but with that decent chunk of buying, I'm looking at the potential here maybe for an earnings surprise. And if we do get that, if we look at the weekly chart here we can track a fairly decent five-wave sequence which should have been completing into this $155 to $160 level which we're just trading in and around close last night at $159. I would say in the pre-market today we're trading a little bit higher. So any breach to me of this descending wedge resistance which comes in at the $184 level, I want to engage on the long side certainly thinking about test up into that $200 zone and if we can extend through there then we'd be looking from a technical perspective to test the top of the wedge there which would give us a $235 test. Alternatively, if we see weakness and the report comes in weaker than expected on lower guidance then any move down into the trend line support, $144 area again I worked with bullish reversal patterns as an area where I potentially want to engage on the long side certainly thinking about a test of wedge resistance there at $177. At this stage it would take a break of the $114 level to suggest weaker and accelerating downside here to test back into the $138 to $137 support zone as the next downside of jet. As always, traders, plan the trade, trade the plan and most importantly, manage your risk. Until next time, thanks very much.