We just received fresh earnings reactions for roughly 13% of the S&P 500 - and the market is drawing a hard line between winners and losers.
It’s not enough to beat expectations anymore. If you’re not guiding higher, showing margin expansion, or proving you’ve got AI tailwinds, you’re getting sold.
Period.
This week, we saw breakout moves from the strongest names - and brutal fades from those that disappointed.
It’s a high-stakes environment, and earnings season is where leadership reveals itself.
Let’s get into the data.
Here are the top S&P 500 earnings reactions 👇
*Click the image to enlarge it
Meta Platforms $META had a +5.09 reaction score after reporting a double beat. This was the 3rd consecutive positive earnings reaction.
They reported revenues of $47.52B, versus the expected $44.82B, and earnings per share of $7.14, versus the expected $5.88.
Microsoft $MSFT had a +2.80 reaction score after reporting a double beat. This was the 2nd consecutive positive earnings reaction.
They reported revenues of $76.44B, versus the expected $73.93B, and earnings per share of $3.65, versus the expected $3.38.
Here are the bottom S&P 500 earnings reactions 👇
*Click the image to enlarge it
Qualcomm $QCOM had a -3.26 reaction score after reporting a double beat. This was the 5th consecutive negative earnings reaction.
They reported revenues of $10.37B, versus the expected $10.34B, and earnings per share of $2.77, versus the expected $2.71.
AbbVie $ABBV had a slightly positive reaction score, but fell 0.24% in absolute terms after reporting a double beat. This snapped a streak of 4 consecutive positive earnings reactions.
They reported revenues of $15.42B, versus the expected $15.03B, and earnings per share of $2.97, versus the expected $2.88.
Now let's dive into the data and talk about the most important reports 👇
META had its 3rd consecutive positive earnings reaction 🔥
Meta Platforms rallied 11.3% after this earnings report, and here's what happened:
Revenue grew 22% year-over-year, driven by advertising growth and higher ad prices and impressions.
Operating income grew 38% year-over-year with a 39% net income margin.
Key performance indicators soared: daily active people reached 3.48B, up 6% year-over-year, ad impressions rose 11%, and average price per ad increased 9%.
This is another surreal report from one of the largest companies in the world. They continue to blow past Wall Street's expectations.
We love how the market is consistently rewarding the stock when it reports earnings. This adds to our conviction in the bullish fundamental story.
The price action is as bullish as it gets... a gap-n-go to resolve a textbook multi-month accumulation pattern. We think this stock is going higher!
So long as META holds above 741, the path of least resistance is decisively higher for the foreseeable future.
MSFT had its 2nd consecutive positive earnings reaction 🔥
Microsoft rallied 4% after this earnings report, and here's what happened:
Revenue and net income skyrocketed by 18% and 24% year-over-year, respectively.
Commercial bookings exceeded $100B for the first time, up 37% year-over-year.
Copilot apps surpassed 100M monthly active users & GitHub Copilot enterprise customers grew 75% quarter-over-quarter.
This was another blockbuster earnings report from the 2nd-largest company in the world. Their ability to continue growing at such a rapid rate is astounding.
The stock has risen in a virtually straight line since its last earnings report, which was the best earnings reaction since 2015.
While Thursday's intraday reversal (+8% to +4%) was nasty, we expect the market to continue chasing it higher over the intermediate timeframe.
Over the short term, this would be a logical level to digest gains. The price is running into a key Fibonacci extension level where we often see sellers step in.
We expect MSFT to churn sideways below 545 over the short term. However, over longer timeframes, we expect the price to continue grinding higher.
Thank you for reading.
- The Beat Team
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