The Daily Beat - December 1, 2025 📈

There were no S&P 500 earnings reactions on Friday, but we want to tell you about one of our favorite software names in the market.

Every now and then, a stock shows up on our radar that forces us to stop what we’re doing and take a closer look. 

Not because the industry is strong, but because the company itself is so relentlessly executing that it simply refuses to behave like its peers.

The name that has our attention is JFrog $FROG.

It's a $7B software company that sits at the heart of modern DevOps. Their platform, the so-called “Liquid Software” vision, helps enterprises automate, secure, and manage the entire lifecycle of their software releases. 

If you’re a company pushing code into production, there's a good chance JFrog is somewhere in that pipeline, making sure nothing breaks.

And while most software names are stuck in neutral or flat-out lagging, the stock is ignoring that weakness. 

For example, in Sunday's Weekly Beat column, we wrote about Salesforce $CRM, which is expected to report earnings after Wednesday's closing bell. This is one of the largest software stocks in the world, and it looks woeful.

After the closing bell on November 6th, FROG reported its 14th consecutive top- and bottom-line beat. 

And this quarter's earnings reaction was special... 

The stock exploded nearly 27% the next day, marking its second-best earnings reaction ever. That doesn’t happen to companies with questionable fundamentals. It happens when Wall Street is re-rating a business because the numbers keep coming in better than expected.

JFrog is doing something rare in this environment: it’s flawlessly executing.

Before we even look at the stock, we need to understand why investors like this business.

It all starts with annual recurring revenue, the lifeblood of any subscription software company:

*Chart via FROG's latest investor presentation.

Looking at JFrog’s long-term ARR chart, what stands out is the consistency. It’s color-coded year by year, showing the different vintages of customer cohorts, and together they form a clean, steady stair-step higher. 

No dips...

No reversals... 

No COVID whiplash... 

Just smooth, disciplined expansion.

That’s precisely what the market wants from a company still climbing the maturity curve.

JFrog isn’t wildly profitable yet on traditional metrics, and it doesn't need to be. Wall Street only cares about ARR growth at this stage of the lifecycle.

Build the user base, deepen the moat, expand the platform, and profit margins can scale dramatically later.

This is the classic software playbook. 

What separates this company is that they’re executing that playbook with almost unnatural steadiness. While competitors are choking on cost cuts and slowing renewal rates, they are posting multi-year highs in ARR and winning new enterprise customers at the high end of the market.

This is why the market suddenly loves the story again, and the chart is finally confirming it.

Now, let’s connect that fundamental strength to the price action.

Take a look at the weekly chart of FROG:

FROG has spent the past two years carving out one of the cleanest multi-year bearish-to-bullish reversal patterns in the entire software space. 

For years, each pullback has been met with stronger demand, and each rally has carried further.

And now we finally have the breakout.

The stock just ripped through a major resistance zone and is trading at its highest level since 2021. We now have confirmed uptrends in the technicals and fundamentals.

It's precisely the kind of fusion setup we love here at The Beat Report.

Welcome to the final month of 2025!

-The Beat Team