The market just processed 33 fresh S&P 500 earnings reports… and the scoreboard tells a story of rising tension.
On the surface, the numbers looked strong.
Most companies beat expectations.
Revenue and earnings growth are still coming in hot.
But once again, price action is telling a different story.
Wall Street isn't just asking for good numbers - it's demanding greatness.
Even then, there's no guarantee the crowd will cheer.
Some names were rewarded handsomely, powering higher off fresh breakouts.
But others were met with cold shoulders, punished despite textbook beats.
We’re in a market that’s getting more selective by the day - and expectations have never been higher.
Let’s dig into the data.
Here are the top S&P 500 earnings reactions 👇
*Click the image to enlarge it
Apple $AAPL had a +0.11 reaction score after reporting a double beat. However, this was the 4th consecutive negative earnings reaction in absolute terms.
They reported revenues of $94.04B, versus the expected $89.56B, and earnings per share of $1.57, versus the expected $1.44.
Monolithic Power Systems $MPWR had a +3.84 reaction score after reporting a double beat. Shareholders have been rewarded for 7 of the company's last 8 earnings reports.
They reported revenues of $660M, versus the expected $650M, and earnings per share of $4.21, versus the expected $4.12.
Here are the bottom S&P 500 earnings reactions 👇
*Click the image to enlarge it
Amazon $AMZN had a -3.05 reaction score after reporting a double beat. This was the 5th consecutive negative earnings reaction.
They reported revenues of $167.70B, versus the expected $162.19B, and earnings per share of $1.68, versus the expected $1.33.
Coinbase $COIN had a -1.93 reaction score after reporting mixed results. Shareholders have been punished for 6 consecutive earnings reports.
They reported revenues of $1.50B, versus the expected $1.59B, and earnings per share of $5.14, versus the expected $1.25.
Now let's dive into the data and talk about the most important beats 👇
AAPL had its 4th consecutive negative earnings reaction 🩸
Apple fell 2.5% after this earnings report, and here's what happened:
Revenue and net income grew by 10% and 12% year-over-year, respectively.
Installed base of active devices reached all-time highs across all categories and geographies.
In addition to the solid quarter, the management team gave forward guidance that maintains the current growth rate.
This was another good quarter from one of the world's largest companies.
Despite the results, the market wasn't interested in rewarding shareholders for it. Instead, they sold the news...
The price is at a key level of interest in absolute and relative terms. Either the bulls need to step up, or it's only a matter of time before the bears come in and mark the beginning of a brand-new primary downtrend.
So long as AAPL holds above the 185-200 range, the path of least resistance is sideways to higher for the foreseeable future.
On the flip side, things could get ugly if the price breaks below this level.
AMZN had its 5th consecutive negative earnings reaction 🩸
Amazon fell 8.3% after this earnings report, and here's what happened:
Revenue and net income skyrocketed by 13% and 35% year-over-year, respectively.
The AWS backlog at quarter-end was $195B, up 25% year-over-year.
The recent Amazon Prime Day was the best ever in terms of sales and sign-ups.
This was another blockbuster earnings report from the world's largest Consumer Discretionary company. Their ability to continue growing AWS at such a rapid rate is astounding.
However, the market faded this report, and it did so with authority. This was the worst earnings reaction since Q1 2023.
Before the report, price looked poised to resolve a multi-month accumulation pattern and break out to new all-time highs.
This price action was a significant setback and will likely require weeks to months to repair.
We expect AMZN to churn sideways below 236 for the foreseeable future.
Thank you for reading.
- The Beat Team
P.S.: Have you noticed an increase in stock scams lately?
