Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - December 12, 2025 π
December 12, 2025
Earnings season is the heartbeat of the market, and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session: the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the latest earnings stats from the S&P 500 π
*Click the image to enlarge it
Thursday's Beat Sheet was all about software. We heard from some of the largest players in the industry, and we learned a ton from the market's reactions.
Following a big double beat, Adobe $ADBEshareholders were rewarded with a +0.94 reaction score.
The company reported $6.19B in revenues, beating the expected $6.11B, and earnings per share of $5.50, above the expected $5.40.
On the flip side, Oracle $ORCL shareholders suffered a -3.28 reaction score after a mixed earnings report.
Despite a big bottom-line beat, revenues came in much lower than expected.
Now let's dive into the fundamentals and technicals π
ADBE snapped a 5-quarter beatdown streak π₯
Adobe had a +2.1% post-earnings reaction, and here's what happened:
Revenues hit an all-time high, growing 10% year-over-year.
They generated $10B in free cash flow in 2025 and are aggressively repurchasing shares with it. This year, they bought nearly 31M shares for $12B, and there's an additional $5.9B remaining under the current authorization. In other words, they're a share cannibal!
In addition to the great quarter, the management team issued better-than-expected guidance for 2026.
We highlighted this setup in the latest column of the Weekly Beat, noting that the stock was testing the upper bound of a well-defined multi-month consolidation.
We wanted to see a gap-n-go move to kick off a fresh leg higher.
Instead, the market gave us a little shakeout before the breakout. This works for us!
Additionally, we noted that ADBE had one of the longest beatdown streaks in the S&P 500 ahead of this earnings report.
The bears have now lost control of ADBE's technicals and fundamentals.
We like this name... A LOT.
ORCL had its worst earnings reaction since Q4 2023 π»
Oracle had a -10.8% post-earnings reaction, and here's what happened:
Revenues surged 14% year-over-year, with cloud and software accounting for 86% of the total top-line.
Remaining performance obligations have ballooned to $523.3B, up over 433% year-over-year. Major contracts with Meta, Nvidia, and others have driven this astronomical growth.
The management team expects the top- and bottom-line to continue accelerating. However, they also expect to dramatically increase capital expenditures next year.
We also highlighted this setup in the latest column of the Weekly Beat, noting that the stock had its best earnings reaction of the 21st century last quarter.
However, there was no upside follow-through...
Instead, the sellers stepped in and drove the price down by nearly 50%.
Then the stock had its worst earnings reaction in years yesterday.
The price is now on the cusp of resolving a massive top. It's do or die right here for the bulls.
We also noted that the stock has suffered negative post-earnings drift for six consecutive quarters.
Is this time different? We doubt it.
At the moment, the market believes they are spending too much on CapEx. Investors are also skeptical that the company's remaining performance obligations will translate into actual revenue and earnings.
Until something significantly changes, we want to avoid ORCL.
Happy Friday!
-The Beat Team
P.S. Last week, Breakout Multiplier jumped into Planet Labs $PL calls as momentum pushed into the highest-beta, most risk-on corners of the market.
Yesterday, the stock jumped 35% after a blockbuster earnings report, giving them the chance to sell half the position for a double and let the rest ride risk-free.
