Airbnb $ABNB had its best day ever on Friday after it reported a double beat and raised its guidance the night before.
It was a fabulous report.
Not only are they growing top-line at 12% Y/Y, but the company is a free cash flow machine.
The company's free cash flow margin is 40%, which enables it to repurchase nearly $1B worth of common stock each quarter.
It's a share cannibal.
In addition, ABNB is investing $250M in launching and scaling new businesses this year.
The management team isn't satisfied with their current market share. They want MORE!
The market loves their attitude, and the stock has been rewarded accordingly.
Let's talk about what else happened 👇
Here are the latest earnings reactions from the S&P 500:
*click the image to enlarge it
As you can see, Airbnb had the best earnings reaction on Friday, and Godaddy had the worst.
Applied Materials was the largest company to report. It reported a double beat but fell 8.2% with a reaction score of -3.6.
Now, let's dig into the data and talk about some of the best and worst earnings reactions 👇
ABNB had its best day ever after its report:
Airbnb reported a blockbuster earnings report and had its best day ever. We highlighted this data point in the lower pane of the chart.
In addition, the stock gapped above a downtrend line that had been in place for nearly a year.
We think the stock is in the early stages of resolving a multi-year accumulation pattern.
If ABNB is above 170, the path of least resistance is higher toward new all-time highs.
WYNN had its best earnings reaction since Q1 2016:
Wynn Resorts reported a double beat and rallied over 10% with a reaction score of 5.1. It was a sweet reaction.
As you can see, WYNN had its best earnings reaction ever in 2016. It was near the beginning of a multi-year uptrend.
The Q1 2025 earnings reaction could begin a new uptrend like it was nearly a decade ago.
The company is firing on all cylinders, and the management team expects this fundamental momentum to continue for the foreseeable future.
If WYNN can reclaim 100, the path of least resistance will shift higher.
GDDY had its worst earnings reaction ever:
Godaddy reported mixed results and fell 14.3% with an earnings reaction of -9. It was nasty! 🤮
The market reacted this way because of the company's guidance. The management team guided towards 7% revenue growth, which is lower than it has been recently.
Moreover, the total customer count declined by 500,000. This wasn't what the market wanted to hear.
If GDDY is below 190, the path of least resistance is lower.
MSI had its worst earnings reaction since Q1 2022:
Motorola Solutions reported a double beat but fell by 6% with a reaction score of -6.5. This reaction has caused the stock price to reach fresh multi-month lows.
The company had numerous red flags in its earnings report, including backlog concerns, tariff and FX headwinds, legal and regulatory challenges, and a decline in international revenue.
There are a lot of issues with this company at the moment...
If MSI is below 450, the path of least resistance is lower.
IR had its 4th consecutive negative earnings reaction:
Ingersoll-Range reported a double miss and fell 7.4% with a reaction score of -5.3. This was the second-worst reaction ever.
The company's China operations are struggling, leading to the company issuing weaker-than-expected guidance.
To make matters worse, they are having trouble integrating ILC Dover, which they acquired in 2024 for over $2.25B.
Not good. Not good at all.
If IR is below 85, the path of least resistance is lower. This would also mark the resolution of a multi-year distribution pattern.
