On Friday, the earnings parade continued, and market reactions remained as mixed as ever.
Financials were front and center, with a few regional banks delivering strong reports - yet even the cleanest double beats struggled to spark much follow-through.
Meanwhile, one of the market’s strongest momentum names snapped a key streak and sent a warning shot to the broader tape.
It’s a reminder that in this environment, even great numbers aren’t always enough.
Let’s break down the key reactions and what they’re telling us about sentiment right now.
Here are the latest S&P 500 earnings stats 👇
*Click the image to enlarge it
Regions Financial $RF had a +3.18 reaction score after reporting a double beat.
They reported revenues of $1.91B, versus the expected $1.86B, and earnings per share of $0.60, versus the expected $0.56.
Netflix $NFLX had a -3.11 reaction score after reporting a double beat.
They reported revenues of $11.08B, versus the expected $11.06B, and earnings per share of $7.19, versus the expected $7.07.
Now let's dive into the data and talk about what happened with these reports 👇
SCHW has been rewarded for 7 of its last 10 earnings reports 🔥
Charles Schwab rallied 2.9% after this earnings report, and here's why:
They achieved record Q2 results with 25% year-over-year revenue growth and 60% increase in GAAP net income.
Opened over 1 million new brokerage accounts and gathered $80.3B in core net new assets, a 31% increase versus Q2 2024.
Total client assets reached a record $10.76T, up 14% year-over-year.
Uncle Chuck has never been stronger, and the market is loving it.
The stock has consistently beaten the market's expectations, rallying after seven of its last 10 earnings reports. This is one of the best streaks in the Financial sector.
Price is on the cusp of resolving a textbook multi-year accumulation pattern, closing last week at the highest level in history.
If SCHW is above 96, the path of least resistance is likely to remain higher for the foreseeable future.
NFLX snapped a 3 quarter beat streak 🩸
Netflix fell 5.1% after this earnings report, and here's why:
Foreign exchange volatility remains a key driver of revenue guidance changes, with 55% of revenue and 29% of operating expenses in non-USD currencies.
This growth was driven by increased memberships, higher pricing, and advertising revenue, with ad revenue on pace to double year-over-year.
In addition to the solid numbers, management raised its 2025 revenue forecast to $44.8B to $45.2B, representing 15–16% year-over-year growth.
This was a classic case of beat / beat / raise / & drop. There was nothing wrong with this report - the market is concerned about justifying the current valuation.
The stock has been one of the strongest in the S&P 500 recently - however, this quarter's earnings reaction is a significant red flag for us.
Price is in no-man's land right now, between 2 key Fibonacci extension levels.
We expect NFLX to churn sideways for the foreseeable future.
Thank you for reading.
- The Beat Team
P.S.: Even as earnings dominate the headlines, there’s another story quietly unfolding…
While stocks are swinging on every report, the crypto market is building momentum toward what could be its next massive inflection point. 🚀
See why the crypto market is on track for a $10 trillion valuation - and how you can profit from the move.
