Earnings are the heartbeat of the market - and every week brings a fresh set of opportunities and risks. With each report, we get new information about corporate health, investor sentiment, and the sectors driving leadership (or lagging).
In the Weekly Beat, we spotlight the most important earnings reactions from the prior week - the winners, the losers, and the surprises that moved markets. Then we shift our focus forward, breaking down the biggest setups and expectations for the week ahead.
Whether it’s mega-cap leaders, niche growth stories, or the sectors most tied to the economy, we’ve got you covered on what traders need to know right now.
After reporting a double beat, Workday $WDAY suffered its 3rd negative earnings reaction out of its last 4. The company is undergoing a significant restructuring, which includes reducing its workforce and acquiring other companies.
The $185B software giant, Intuit $INTU,beat headline expectations but fell 5%. This negative reaction did significant technical damage, confirming a failed breakout above the prior cycle peak.
There weren't any S&P 500 earnings reactions to cover, so we highlighted the Chinese Technology ETF $CQQQ. The fund is decisively resolving a textbook multi-year bearish-to-bullish reversal pattern.
We also covered the latest earnings reaction from PDD Holdings $PDD, and its base-on-base pattern that we think looks great.
There weren't any S&P 500 earnings reactions to cover, but North of the border, Canada's banking giants are stealing our attention.
From Wall Street to Frankfurt to Hong Kong, financial stocks are climbing higher together. Now, the Canadian giants - the Big 5 - are joining in, and they’re doing so in spectacular fashion.
After reporting a double, the $23B specialty retailer, Williams-Sonoma $WSM, suffered its 3rd consecutive negative earnings reaction. This company is at the forefront of Trump's Tariff War, and the market doesn't like it.
The $11B packaged foods stock known for its PB&J and much more, J.M. Smucker $SJM, posted mixed results and got slammed. The price is on the cusp of resolving a multi-decade distribution pattern.
The darling of the AI Revolution, Nvidia $NVDA, crushed Wall Street's expectations again, but had a slightly negative earnings reaction. Their data center revenue is growing at an astounding 56% year-over-year.
Finally, the $23B cybersecurity giant, CrowdStrike $CRWD, posted a double beat and rallied 4.6%. This reaction formed a textbook bullish engulfing candlestick and snapped a streak of 3 consecutive negative earnings reactions.
What's happening next week 👇
Next week will be all about Broadcom $AVGO. The $1.4T semiconductor company reported 46% year-over-year growth in its AI semiconductor revenue last quarter. Market participants will be closely watching for signs of a slowdown or acceleration.
Beyond those, we’ll also be watching:
The $245B software giant, Salesforce $CRM.
In apparel retail, we'll hear from Lululemon Athletica $LULU and American Eagle Outfitters $AEO.
And the up-and-coming Chinese EV producer, NIO $NIO.
In addition, we'll hear from one of 2025's hottest IPOs, Figma $FIG. Since the stock's brief post-IPO pump, shareholders have been aggressively dumping, pushing the price to new all-time lows.
It's set to be another eventful week, so there will be plenty to cover in The Daily Beat.
Now, let’s dig into the setups we'll be monitoring closest next week.
Here's the setup in AVGO ahead of Thursday's earnings report 👇
Broadcom is expected to post $15.83B in revenue and EPS of $1.66 after Thursday's closing bell.
Heading into the report, the price is stuck below a key Fibonacci extension level from its over 40% decline earlier this year.
While it wouldn't surprise us to see a negative reaction after seeing how the market responded to Nvidia's $NVDA report last week, we still love this name over longer timeframes.
Since going public in 2009 at 1.65, the share price has increased to nearly 300, growing at a staggering 38.34% CAGR.
Additionally, late last year, the stock had its best earnings reaction ever following a blockbuster report. That week also marked the best one-week change ever relative to NVDA, which we believe was the initiation of a brand-new uptrend compared to its $4.2T peer.
We think this is the new leader of the semiconductor industry.
Here are the past 3 years of earnings results & reactions for AVGO 👇
Over the past three years, Broadcom has consistently crushed Wall Street estimates and been rewarded for it.
In its last 2 reports, the year-over-year EPS growth accelerated to over 40%, and the market is expecting similar growth this quarter.
Shareholders have been rewarded for 2 of the last 3 earnings reports since the historic reaction we mentioned earlier.
The bottom line is that this stock tends to deliver, but the market’s reaction will likely hinge on what's happening in the broader market.
We'll learn more about the group this week with AVGO's report after Thursday's closing bell and the reaction on Friday.
Here's the setup in CRM ahead of Wednesday's earnings report 👇
Salesforce is projected to report $10.14B in revenue and EPS of $2.78 after Wednesday's closing bell.
Technically, the stock is carving out a textbook multi-year distribution pattern. A close below 226 would shift the path of least resistance from sideways to lower for the foreseeable future.
On a relative basis, the price has already resolved a similar top compared to the broader market. These new multi-year lows in relative terms are supportive of new lows in absolute terms.
We think Wednesday's report could be the catalyst for the bears to take control of this name decisively.
Here are the past 3 years of earnings results & reactions for CRM 👇
As you can see, Salesforce's top and bottom-line growth have been decelerating recently. Confirming the bearish shift in fundamentals are back-to-back negative earnings reactions.
This isn't the only trad-software name that's struggling. In Monday's Daily Beat, we highlighted the negative earnings reactions in Workday $WDAY and Intuit $INTU.
The market is telling us loud and clear that AI is killing companies in the software industrial complex that are failing to innovate.
With the technicals confirming the negative fundamental outlook, we expect the market to punish CRM for its earnings report after the closing bell on Wednesday.
To our readers in the United States, we wish you a happy Labor Day Weekend.
-The Beat Team
P.S. All Star Charts was early to Broadcom $AVGO in early 2023, when nobody was talking about it. Since our entry, the stock has rallied nearly 400%, joining the $1T market capitalization club along the way.
If you want to make huge gains in industry leaders, join ASC Premium today and get full access to our research.
We're offering a Labor Day special for ASC Premium, providing a 46% discount on our regular retail price.
Don't wait, join today.
If you find our content valuable, we would greatly appreciate it if you could shareit with your friends, family, and colleagues. Your help in spreading the word is invaluable in supporting our work. Thank you to all of you who share!
