December 19, 2025

Happy Friday, everyone!
Good morning — coffee in hand, inbox open, weekend almost in sight ☕️

Quick thought to start the day: numbers aren’t scary… they’re just telling a story.
Most earnings reports look complicated, but they’re really just a snapshot of how a company is actually doing behind the scenes.

Today’s post breaks it down in plain English — no finance jargon, no headaches — just how to read an earnings report and walk away feeling confident instead of confused.

Let’s make sense of the numbers (and head into the weekend smarter).

— Ryan Rincon, Founder at The Wealth Wagon Inc.

— Nassim Nicholas Taleb

Market Update: Markets pushed higher today, with major indices showing solid strength across the board. The Nasdaq climbed 1.38%, the S&P 500 added 0.79%, and the Dow Jones inched up 0.14%, reflecting steady confidence as investors rotated back into growth and tech names. Despite the upbeat equity momentum, Bitcoin slipped 0.62%, continuing a mild pullback as crypto traders reassess short-term volatility.

In commodities, Gold dipped 0.21% and Silver fell 2.17%, signaling a move away from traditional safe havens. Meanwhile, big names in tech and retail continued to deliver: Apple edged up 0.13%, Amazon jumped 2.48%, and Broadcom gained 1.18%, showcasing strong demand for semiconductor and e-commerce plays.

Youngest Bondi Beach Shooting Victim Mourned as Texas Rabbi Recovers From Injuries
Tributes continue to grow for the youngest victim of the Bondi Beach attack, while a Texas rabbi injured in the incident is reported to be recovering. Families and community leaders are calling for stronger international cooperation on preventing extremist violence. Investigators are piecing together the sequence of events leading up to the attack. The tragedy has reignited questions about public safety and early-warning systems.

Belgium Seeks Protection From Russian Retaliation as EU Weighs Massive Ukraine Loan
Belgium is pushing for stronger EU safeguards as leaders consider a major financial package to support Ukraine. Officials worry Moscow could retaliate economically or through cyber measures. The debate comes as Europe works to maintain unity amid prolonged conflict pressures. The loan’s structure remains a key point of negotiation.

Australia Announces Hate Speech Crackdown After Bondi Shooting
Australia is moving quickly to tighten hate-speech laws in the wake of the Bondi shooting. Officials say extremists have exploited gaps in current legislation, allowing harmful rhetoric to spread online. The proposed measures aim to strengthen penalties and give authorities more intervention tools. Public reaction has been largely supportive, though free-speech debates are expected.

Bitcoin Falters as Strategy’s Buying Power Runs Low on Fuel
Bitcoin slipped again as market analysts say earlier aggressive buying strategies are losing strength. Traders are watching liquidity conditions closely as volatility increases. The pullback has sparked renewed questions about how sustainable recent rebounds truly were. Some investors are shifting into stablecoins while awaiting clearer signals.

Crypto’s Slump May Be a Cultural Problem as Much as a Financial One
The latest downturn in crypto markets is being framed not just as an economic issue but a shift in cultural sentiment. Younger investors who once embraced digital assets enthusiastically appear more cautious. Analysts argue the industry must rebuild trust after a series of high-profile failures. Adoption metrics show enthusiasm plateauing even as technology continues to advance.

Investors Shift From Bitcoin and Ethereum to XRP ETFs Amid Market Rotation
A notable rotation is underway as traders move funds into XRP-focused ETFs. Analysts say the shift reflects a search for assets perceived as more stable during turbulent conditions. Bitcoin and Ethereum have seen reduced inflows as investors reassess risk. ETF demand suggests the market is looking for new leadership among large-cap tokens.

Americans Brace for Rising Obamacare Costs as Congress Weighs Next Steps
Concerns are mounting nationwide over increasing healthcare costs tied to expiring subsidies. Households are preparing for higher premiums unless legislative action intervenes soon. The uncertainty has become a major pressure point during year-end budgeting. Economists warn the impact could ripple through consumer spending.

Political Battle Over Obamacare Intensifies as Lawmakers Trade Blame
A renewed political fight has emerged over who is responsible for rising insurance pressures. Both parties insist the other has undermined stability through policy shifts and stalled legislation. The debate underscores how healthcare remains a central voter concern heading into next year. Analysts note that long-term solutions still appear far off.

Markets Rise as CPI Data Eases and Tech Stocks Boost Sentiment
U.S. stocks opened higher following a softer inflation reading that reassured investors. Tech shares surged, helping lift major indexes from earlier weakness. Traders are now speculating whether the data could influence upcoming rate-cut decisions. Despite gains, volatility remains elevated as economic signals continue to conflict.

Most people say they “invest long term,” but almost no one actually reads what companies tell investors about their business. They glance at headlines, react to price movement, or rely on commentary from others. That’s not investing — that’s outsourcing thinking.

The good news is: you do not need to be an analyst or finance professional to understand earnings reports. You just need to know what matters and what to ignore.

This article will walk you through how to read an earnings report in under 15 minutes and come away knowing whether a company is actually getting stronger or quietly deteriorating.

This is the biggest mistake people make.

Stock prices often move for reasons unrelated to business performance, including expectations, positioning, macro sentiment, or guidance wording. A company can report excellent results and still drop 10%. That doesn’t mean the business is worse.

When reading earnings, pretend the stock price does not exist.

Your job is to answer one question only:

Is this business becoming more valuable over time?

Revenue is not just “up” or “down.”

You want to know:

Look for language like:

If revenue is growing but customer count is flat, that usually means price increases. That can work for a while, but it’s not infinite.

Healthy businesses usually grow both customers and revenue per customer.

Margins tell you far more than revenue.

Focus on:

What you want to see is stable or improving margins. That means the business has pricing power, operational efficiency, or scale advantages.

Warning signs:

Margins shrinking while revenue grows is often the first sign of future trouble.

Profits can be manipulated. Cash is harder to fake.

Look for:

Ask:

If earnings are rising but cash flow is flat or declining, something is off — often aggressive accounting or rising working capital needs.

Long-term winners convert earnings into cash.

Debt itself is not bad. Unnecessary debt is.

Check:

Ask:

Companies that borrow to invest in profitable expansion are very different from companies borrowing to survive.

This is where most insight lives.

Pay attention to:

Good management is specific. Bad management hides behind generalities.

Compare what management said last quarter to what they say now. Are timelines slipping? Are priorities changing? Are explanations evolving?

Consistency matters.

The most important part of an earnings report is often the least discussed: guidance.

Look at:

If guidance is cautious while results were strong, management may see trouble ahead. If guidance is optimistic after weak results, be skeptical.

Companies know their pipelines better than anyone.

You don’t need to forecast next quarter’s price movement to be a good investor.

Your advantage comes from:

If you can confidently say:

You’re already ahead of most market participants.