Rule Breaker Earnings Roundup

This podcast episode analyzes recent earnings reports from Spotify, DataDog, and Ferrari, examining their performance against market expectations. Spotify's record number of monthly users and operating margin exceeding 15% suggest successful monetization despite weak ad revenue, driven by innovations like audiobooks and potential expansion into physical books. DataDog's strong sales growth and management's emphasis on AI-driven features are presented as key factors in overcoming market skepticism towards software stocks. Ferrari's shares rose due to robust earnings and reassurance about order backlog extending into 2027, with the brand's resilience attributed to its luxury status and the increasing number of wealthy individuals globally. The discussion also considers the impact of electric vehicles on Ferrari's brand and the company's strategy of maintaining exclusivity.