This week has been all about the heavyweights - and yesterday proved why we’ve been watching this stretch of earnings season so closely.
In Sunday’s Weekly Beat, we talked about how Tesla’s $TSLA earnings could be the most pivotal event for the entire market this week. After all, the Magnificent 7 now account for 25% of the whole U.S. stock market, so when they move, everything else follows.
TSLA delivered a massive disappointment, snapping its 3-quarter beat streak. But it wasn’t all bad news.
Another member of the Mag 7 reported strong numbers and kept its multi-quarter rebound alive, reminding investors that strength within the group is still selective rather than broad-based.
Beyond the mega-caps, the market reaction was all over the place.
The divergence between winners and losers continues to widen, showing it still pays to sell stocks short.
Now let’s break down the most important earnings reactions and what they mean for the road ahead.
Here are the top S&P 500 earnings reactions 👇
*Click the image to enlarge it
West Pharmaceutical Services $WST had a +6.11 reaction score after reporting a double beat. This was the best earnings reaction of the 21st century.
They reported revenues of $770M, versus the expected $730M, and earnings per share of $1.84, versus the expected $1.51.
Blackstone $BX had a +1.43 reaction score after reporting a double beat. This was the best earnings reaction in years.
They reported revenues of $3.07B, versus the expected $2.81B, and earnings per share of $1.21, versus the expected $1.10.
Here are the bottom S&P 500 earnings reactions 👇
*Click the image to enlarge it
LKQ $LKQ had a -8.87 reaction score after reporting mixed results. This was the worst reaction since 2018.
They reported revenues of $3.64B, versus the expected $3.62B, and earnings per share of $0.87, versus the expected $0.92.
Dow $DOW had a -6.51 reaction score after reporting a double miss.
They reported revenues of $10.10B, versus the expected $10.24B, and earnings per share of -$0.42, versus the expected -$0.17.
Now let's dive into the data and talk about the most important reports 👇
GOOG had its 2nd-consecutive positive earnings reaction 🔥
Alphabet rallied 0.9% after this earnings report, and here's why:
Revenue rose 14% to $96.43B, with double-digit growth in Search, YouTube, subscriptions, and Cloud.
Net income increased 19% to $28.2B & diluted EPS grew 22% to $2.31.
Capital expenditures (CapEx) for 2025 are expected to be $85 billion, primarily for servers and data centers to meet demand for cloud and AI services. The market was closely watching this number as the spending from mega-cap technology stocks is fueling the AI Revolution.
This was another solid quarter from the 5th-largest company in the world.
The market is loving the significant investment being made in the development of new AI services. Investors believe this will pay off in spades in the future.
The stock is continuing to climb up the right-hand side of a multi-month accumulation pattern, and looks poised to make new all-time highs soon.
If and when GOOG closes above 208.70, the path of least resistance will shift from sideways to higher for the foreseeable future.
TSLA snapped a 3-quarter beat streak 🩸
Tesla fell 8.2% after this earnings report, and here's why:
Revenue was $22.5B, down 12% year-over-year, driven by lower vehicle deliveries.
Automotive segment Q2 2025 revenue was $19.71B, down 12% year-over-year, with gross margin at 17.2%.
After numerous delays, Cybercab Robotaxi volume production is now scheduled for 2026.
This was another disappointing quarter from the 10th-largest company in the world.
The stock found resistance at a multi-month downtrend line that has capped rally attempts on numerous occasions. However, the chart isn't broken (yet).
As the price approaches the apex of a textbook symmetrical triangle, the market will soon need to make a decisive move (up or down).
Over longer timeframes, TSLA is a hot mess. But over shorter timeframes, we want to lean in whichever direction this pattern resolves.
Thank you for reading.
- The Beat Team
P.S.: Louis nailed the Ethereum trade, but now he's rotating to a different crypto with even more potential firepower.
