The Weekly Beat 📈

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 on corporate health, investor sentiment, and where money is rotating.

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 to the week ahead, breaking down the technicals and fundamentals.

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.

What happened last week 👇

• Monday:
  • There were no S&P 500 earnings reactions to cover, so we highlighted one of our favorite software names in the market. Its name is JFrog $FROG.
  • In early November, the stock just had its second-best earnings reaction following its 14th consecutive top- and bottom-line beat. This was the catalyst for resolving a massive bearish-to-bullish reversal pattern and decisively shifting the path of least resistance to the upside.
• Tuesday:
  • Again, there were no S&P 500 earnings reactions to cover, so we wrote about two big earnings reports from after Monday's closing bell: MongoDB $MDB and Credo Technology $CRDO.
  • MDB and CRDO rallied by double digits after posting better-than-expected headline results.
• Wednesday:
  • Once again, there were no S&P 500 earnings reactions to cover, so we wrote about one of the best turnaround stories of 2025. This is American Eagle $AEO.
  • After nine consecutive negative earnings reactions, AEO had its best earnings reaction ever last quarter. On Wednesday, the stock popped 15% after another big double beat.
• Thursday:
  • Following a double beat, Dollar Tree $DLTR, had its best earnings reaction in eight quarters. The company's adjusted EPS grew faster than expected, up 12% year-over-year, driven by 40 basis points of gross margin expansion.
  • The $131B cybersecurity giant, CrowdStrike $CRWD, was rewarded for reporting better-than-expected headline results. The company's annual recurring revenues and free cash flow hit record highs.
• Friday:
  • Like DLTR the day before, Dollar General $DG crushed the market's expectations and surged 14% to a new 52-week high. Net income exceeded the management team's guidance, surging 43.8% year-over-year. 
  • The $235B software behemoth, Salesforce $CRM, reported mixed headline results, but there was nothing mixed about the earnings reaction. The stock popped 3.7% and snapped a three-quarter beatdown streak.

What's happening next week 👇

Next week, we'll be focused on the earnings reports of some of the largest technology stocks in the world.

At the top of our radar will be Broadcom $AVGO, Oracle $ORCL, and Adobe $ADBE.

We'll also be watching:

• The membership club retailers Costco $COST and Ollie's Bargain Outlet $OLLI.
• One of the best secular uptrends in the market, Casey's General Stores $CASY.
• The rising star, Planet Labs $PL.
• Meme stocks GameStop $GME and Chewy $CHWY.
• The apparel retail giant, Lululemon $LULU.
• And more!

There will be a ton to unpack next week in the Daily Beat. Stay tuned... 

Now, let’s dive into the names at the top of our radar next week.

Here's the setup in AVGO ahead of Thursday's earnings report 👇

Broadcom is expected to post $17.47B in revenue and EPS of $1.87 after Thursday's closing bell.

Heading into the report, all eyes are on 374. This was resistance over the past few months, until the buyers took over in late November.

Since then, the price has flipped the former resistance into support, and it looks poised to make a fresh leg higher.

And the world's second-largest semiconductor stock, its earnings reaction will dictate the next move for its industry.

Here are the past three years of earnings results & reactions for AVGO 👇

Over the past three years, Broadcom has consistently beaten headline expectations, delivering solid top- and bottom-line growth. As a result, shareholders have been rewarded for the majority of the stock's earnings events.

Additionally, the stock usually has positive pre- and post-earnings drift. This shows that the positive earnings reactions aren't just one-day pops: they're catalysts for sustained buying pressure.

Based on the technical setup and last quarter's positive reaction, we expect AVGO to be rewarded by the market following its earnings report next week.

Here's the setup in ORCL ahead of Wednesday's earnings report 👇

Oracle is expected to report $16.19B in revenue and EPS of $1.64 after Wednesday's closing bell.

Last quarter, the stock had its best earnings reaction of the 21st century, rallying nearly 36% to a fresh all-time high.

However, there was no upside follow-through...

Instead, the sellers stepped in and drove the price down by nearly 50%. 

And in late November, the price violated a shelf of former highs. 

Was this a false start before a bigger downside move?

Or will the buyers step in and turn this former resistance into support?

Whether good or bad, we expect a big move from ORCL after this week's earnings event.

Here are the past three years of earnings results & reactions for ORCL 👇

As we previously mentioned, Oracle had its best earnings reaction of the 21st century last quarter. 

There's nothing bearish about that...

However, the consistent negative post-earnings drift is extremely bearish. The stock has suffered negative post-earnings drift for six consecutive quarters.

If the market liked the company's earnings, we would see buying pressure after the events. Right now, we're seeing the opposite.

In addition, the company rarely delivers top- and bottom-line beats. They're almost always mixed.

Will ORCL flip the script this quarter? We doubt it.

Here's the setup in ADBE ahead of Wednesday's earnings report 👇

The market is looking for Adobe to report $6.11B in revenue and EPS of $5.4 after Wednesday's closing bell.

Heading into the report, the stock is challenging the upper bound of a well-defined multi-month consolidation. 

This comes after the price caught a significant bid last week in sympathy with Salesforce's earnings event.

As an industry, software is being rotated into right now. So long as that continues, ADBE should do well.

We want to see ADBE gap-n-go next week. If it doesn't, the stock will likely need more time to consolidate.

Here are the past three years of earnings results & reactions for ADBE 👇

Adobe has one of the longest beatdown streaks in the S&P 500 right now. For five consecutive quarters, shareholders have been punished for the company's earnings events.

This is happening despite consistently beating headline expectations, and delivering solid top- and bottom-line growth.

Investors have ADBE in the rearview mirror, but this week's earnings event could change that significantly.

Happy Sunday!

-The Beat Team

P.S. Save your spot for Tuesday’s closed-door retail briefing with Macke. This session gives you access to his boots-on-the-ground consumer read, the kind normally reserved for members.