When Reactions Speak Louder Than Results 📈📉

May 18, 2025
Sam Gatlin

Last week was packed with key reports, and while the numbers told one story, the reactions told another.

We saw some names break out to new highs. 

Others got slammed, even after solid results. 

A few quiet leaders continued to quietly lead. 

And some names, despite years of consistent performance, just couldn’t catch a bid.

Here’s what stood out… 👇

  • Monday:
    • Monster Beverage $MNST reported mixed results, but the market liked it. The stock has been rewarded for 18 of its last 26 earnings reports.
    • McKesson $MCK reported mixed results, but the stock rallied on the news. They've been rewarded for 19 of their last 25 earnings reports.
  • Tuesday:
    • NRG Energy $NRG reported a double beat and had its best earnings reaction ever. The stock made a gap-n-go to new all-time highs.
    • Fox $FOX reported a double beat and rallied for its 5th consecutive positive earnings reaction. The stock reclaimed the VWAP anchored to the all-time high.
  • Wednesday:
    • DaVita $DVA reported a double beat, but wasn't rewarded for it. The stock has been punished for 5 consecutive earnings reports.
    • Simon Property Group $SPG reported mixed results and had its worst earnings reaction since 2009.
  • Thursday:
    • There weren't any S&P 500 earnings reactions, but...
    • Oklo $OKLO had its best earnings reaction ever.
  • Friday:
    • John Deere $DE reported a double beat and rallied to a new all-time high. The stock has been rewarded for 3 of its last 4 earnings reports.
    • Walmart $WMT reported mixed results, but the market punished it for the 2nd consecutive quarter. The price has carved out a textbook distribution pattern.

Here's what we're watching next week:

EARNINGS CALENDAR (May19-23)

On Monday, we'll hear from the "Expedia of China", Trip.com $TCOM.

Later in the week, we'll hear from The Home Depot $HD, Palo Alto Networks $PANW, Baidu $BIDU (The Google of China), and many more.

There will be a lot to unpack here at The Beat Report.

We're most looking forward to the XPeng $XPEV earnings report, and here's why:

XPEV Chart (05.18.2025)

XPeng manufactures a range of luxury electric vehicles equipped with AI-powered operating systems.

It has been one of the hottest Chinese stocks since it bottomed last August and rallied over 300%.

Despite the recent rally, the market has been consistently punishing shareholders for the company's earnings reports.

On Wednesday, the company is expected to report revenues of $2.08B, and a loss of nearly $0.20 per share.

If the numbers come in better than expectations, we think the stock could skyrocket and begin a new leg higher.

This could also mark the beginning of a new trend of positive earnings reactions.

We want to buy XPEV on strength above the VWAP anchored to the 2025 peak.

Thank you for reading.

- The Beat Report Team 

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