Facebook is a brand that just about everyone in the world knows. The company has grown from being a private social network designed for ivy league students to a way of life for the masses. Recently, Facebook reported its earnings for the second quarter of 2016, once again showing that it has no intentions of slowing the growth. Today, we'll talk about what we saw from earnings, what we're likely to see from the stock in the week ahead as a result, and how binary options traders can take advantage of the trends. So, let's get right to it…

Facebook Reports Strong Q2 Results

As mentioned above, Facebook recently reported strong second quarter financial results. Here's what we saw from the report…

  • Earnings Per Share – In terms of earnings per share, the social media giant did incredibly well. During the second quarter, analysts expected that the company would generate earnings per share in the amount of $0.82. However, Facebook actually reported that earnings came in at a total of $0.97 per share in the quarter; blowing away expectations.

  • Revenue – While Facebook had an incredibly strong quarter in terms of earnings per share, revenue proved to miss the mark. During the quarter, analysts expected that the company would generate revenue of $6.02 billion. Unfortunately, Facebook fell well short of these expectations, producing revenue at only $5.44 billion for the quarter.

  • The Tie Breaker – While earnings were a hit, revenue was a miss. Nonetheless, Facebook had a huge tie breaker. During the quarter, monthly active users came in at a total of 1.71 billion. This was well ahead of Wall Street expectations of 1.69 billion. Not to mention, it shows incredible growth in the figure at 15%.

What We Can Expect To See From Facebook In The Week Ahead

Moving forward, the outlook surrounding Facebook is an incredibly strong one. The reality is that the company isn't just a social network any more. It's where people watch videos, play games, listen to music and far, far more. The company has found a way to connect people on levels that were only imaginable in the past. As a result, they continue to expand their reach every step of the way. The earnings report released last weeks shows that the company is going to continue to grow, and let's face it, that's what investors are looking for.

While the stock did see big gains following the release of earnings, it has seen gradual declines since. Nonetheless, it looks like support is building in the $123.90 range. As a result of the strong fundamental news, Facebook definitely deserves to see strong growth. That, mixed with the technical signals we're seeing make me believe that we're going to see strong gains in the week ahead.

How Binary Options Traders Can Take Advantage Of The Trends

As binary options traders, our job is to spot trends and take advantage of them. In this particular case, it looks like a strong upward trend is headed our way when it comes to Facebook. As a result, binary options traders should be looking for strong call option opportunities in order to follow the trends up to the profits.

What Do You Think?

Where do you think Facebook is headed moving forward and why? Join the discussion in the comments below!

[Image Courtesy of Wikipedia]