Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the top beats from the S&P 500 π
*Click the image to enlarge it
At the top of Thursday's list was Datadog $DDOG, the $66B cloud-monitoring platform that helps companies track the performance of their apps, servers, and infrastructure in real time. The company beat expectations across the board, and the market rewarded shareholders with a +8.15 reaction score.
In the report, they posted revenues of $890M, above the expected $850M, and earnings per share were $0.55, above the expected $0.46.
Coming in second place was the $57B supplier of industrial gases, Air Products & Chemicals $APD. They had mixed headline results, but had a +7.13 reaction score.
Revenues missed by a penny, and earnings per share beat by a penny.
Here are the bottom beats from the S&P 500 π
At the bottom of Thursday's list was the $84B food-delivery and logistics platform, DoorDash $DASH. The company had mixed headline results and suffered a -6.12 reaction score.
They reported revenues of $3.45B, slightly above the expected $3.35B, and earnings per share missed by nearly 20%.
The second-worst beat came from the $9B provider of cloud-based payroll and HR software, Paycom $PAYC. They had mixed headline results and a -4.05 reaction score.
Revenues met market expectations, but earnings per share came in a penny below expectations.
Now let's dive into the fundamentals and technicals π
DDOG had its best earnings reaction since 2023 π₯
Datadog had a +23.1% post-earnings reaction, and here's what happened:
The top line surged 28% year-over-year, driven by strong growth from large customers and over 1,000 platform integrations.
The total customer base grew to 32,000, with 4,060 customers generating $100,000+ of ARR.
Adding to the great report, the management team raised its forward revenue guidance.
This company is firing on all cylinders, and we believe it's one of the most underrated AI stocks in the S&P 500.
And the market agrees with this take right now. The stock not only had its best earnings reaction in years yesterday, but also a textbook gap-n-go from a prolonged accumulation pattern.
We believe this is likely to carry the price to new all-time highs soon.
So long as DDOG holds above 170, the path of least resistance is higher for the foreseeable future.
DASH had its worst earnings reaction ever π»
DoorDash had a -17.5% post-earnings reaction, and here's what happened:
The top and bottom lines increased year-over-year by 27% and 51%, respectively.
Their subscription programs, DashPass and Wolt+, had record quarters in both the U.S. and international markets.
The selling pressure was driven by the management team's forward guidance on spending. They're planning to spend a significant amount of money on new product launches and autonomous delivery capabilities next year.
This was an incredible earnings report from Uber's $UBER largest competitor, but the market was shocked by how much the company plans to spend next year. Investors, with their money, voted unanimously that this is a terrible idea.
Ahead of this report, the stock was coiling above the peak of the prior cycle. It looked poised to rip to fresh all-time highs.
However, yesterday's horrific earnings reaction was a major setback for the technical setup. Now, the price will need significant time before it can decisively breakout to new all-time highs.
So long as DASH is below 257, the path of least resistance is sideways for the foreseeable future.
Happy Friday
-The Beat Team
P.S. The Squeeze Engine is built to see pressure build beneath the surface - before momentum erupts. Thatβs the same signal behind 6,341% and 2,578% moves this year.
