Two of the world's largest companies—Apple and Amazon—just delivered double beats… and the market couldn’t care less.
Amazon posted better-than-expected revenue and EPS, but finished the day slightly negative, marking its 4th consecutive negative earnings reaction.
Apple also beat on both fronts… and got slammed for a -3.7% decline. This extends a rough streak of being punished in 6 of its last 8 earnings reports.
These aren’t speculative names. These are market generals.
If they’re getting sold on good news, that’s a big red flag.
Technically, both charts tell the same story.
After attempting to break out above key resistance levels, both stocks failed hard, printing failed breakout patterns and rolling back over.
When leadership names like these can’t catch a bid even on strong results, it speaks volumes about the underlying tone of the tape.
This isn’t just a stock-specific weakness. This is index risk.
When the heaviest weights in the major averages get hit on strength, it’s often a sign that institutions are distributing, not accumulating.
The question now isn’t whether these reports were good.
The question is: why didn’t it matter?
So what else did we learn from Friday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
DexCom $DXCM had the best reaction score after reporting mixed results.
The company reported revenues of $1.04B, versus the $1.02B estimate, and earnings per share of $0.32, versus the $0.33 estimate.
Motorola Solutions $MSI had the worst reaction score after reporting a double beat.
The company reported revenues of $2.53B, versus the $2.52B estimate, and earnings per share of $3.18, versus the $3.01 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
AMZN has been punished for 4 consecutive earnings reports:
Amazon.com fell 0.1% after this earnings report, and here's why:
Amazon Web Services (AWS) reported 17% Y/Y revenue growth to $29.3B, below analyst expectations, marking AWS's slowest growth in five quarters.
Management's guidance for Q2 2025 operating income was set between $13.0 billion and $17.5 billion, below the consensus estimate of $17.7 billion.
Free cash flow for the trailing twelve months fell to $25.9 billion, down from $50.1 billion a year earlier.
While this company is still showing fabulous growth numbers (especially for a company with $2T in market cap), they're growing slower than the market has anticipated.
This is why the stock has been punished for 4 consecutive earnings reports...
The price has been dancing around the prior cycle's peak since this time last year. We don't expect that to change anytime soon...
If AMZN is below 188, the path of least resistance is sideways to lower for the foreseeable future.
AAPL has been punished for 6 of its last 8 earnings reports:
Apple fell 3.7% after this earnings report, and here's why:
The company has tremendous uncertainty looming around the tariff situation. This report didn't help clear that up!
With an above-market earnings multiple (forward P/E of 26x), the market wasn't happy to hear the management guide toward low to mid-single-digit revenue growth for the next quarter.
While iPhone, Mac, and iPad sales saw some growth, Wearables, Home, and Accessories declined, and overall growth was driven primarily by Services.
This company isn't growing at nearly the rate it needs to support the current valuation.
That's why the market consistently punishes them for reporting earnings...
The price recently made new multi-year lows, but the bulls quickly stepped in and pushed the price back above a key level of interest.
With the stock carving out a massive top, we expect the bears to resolve it soon decisively.
If AAPL is below 200, the path of least resistance will shift from sideways to lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
PS: JC Parets went live on Friday with Riley Rosebee, publisher of Godspeed. They talked about the AI paradigm shift happening right now. Click here to watch the replay, and click here to get the charts Riley was talking about.
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