Rebels Edge · Thu, Aug 6, 2026

Why Datadog Fell After Beating Earnings

Summary

The hosts discuss market reversals, sector rotation, volatility, and earnings reactions ahead of employment data. They attribute Datadog’s decline despite strong results to profit-taking and a high valuation, contrast it with HubSpot’s weaker outlook, and review gains in SoundHound AI and Iovance.

The Dow and Nasdaq reversed their early divergence as the hosts highlighted profit-taking and market rotation.
The hosts cited a VIX near 15.5–16.5 and a recent Nasdaq volatility decline ahead of employment data.
Datadog fell about 16% despite beating earnings and revenue estimates and providing good guidance.
The hosts attributed Datadog’s selloff to its substantial prior rally and a forward price-to-earnings ratio around 111.
HubSpot dropped roughly 19–21% as disappointing next-quarter earnings guidance and slowing growth overshadowed its quarterly beat.
SoundHound AI rallied on record revenue and raised guidance; the hosts highlighted short-dated $8 call buying and the importance of taking profits promptly.
Iovance gained roughly 34% after reporting record quarterly revenue, with the hosts citing strong demand, improved margins, and pipeline developments.

SOUN IOVA DDOG HUBS

Full transcript

Welcome back to the heartbeat market on the Rebel's Edge because if we start up, we're going to be down and then we're going to be up and then we're going to be down and of course we've got the employment data heading our way tomorrow. Not like we haven't already
seen some of that, but we're going to break all of it down for you on today's Rebel's Edge.
>> [music] [music] >> Well, like they say about the weather in San Francisco, Pete, if you don't like the weather, stick around, it'll change.
>> [laughter] >> Um >> So true.
>> the market, I mean, what? We were up four or 500 points again today for like the fifth, sixth day in a row. Um but then tragedies struck and then uh we sold off and now we're down 300 points.
>> Well, and the and the strange thing, John, is so the Dow starts off pretty strong, Nasdaq not looking so great. Now the Nasdaq is actually approved and the Dow has dropped significantly. So yeah, I mean, there's I think what we're seeing is is um something that is going to be talked about, I think, with our stocks today,
too, to some degree, but you know, there are some numbers out there that are just outrageous, year-to-date numbers, 1-year out numbers and what some of these companies have been able to do and I think that people are taking some profits here and there. It's not a bad thing. As a matter of fact, it's probably, you know, opens things up a
little bit, but I think it's interesting to see how that's kind of playing out right now. There's no doubt about it, John. I mean, valuations, yeah, some of the valuations pretty damn high. That's why people are taking some off, but uh I think that the great thing is the rotation still becomes part of the game and you just got to be part of that
rotation.
>> Yep. Well, um we got divergence at the beginning of the day, and now we're going the opposite way just like Pete said, from the Dow up, Nasdaq down hard, to the Dow down, and the Nasdaq almost back to flat. I mean, just go figure. Is that really uh being calculated pretty accurately in
the VIX, Pete?
>> You know, it it it kind of is, John, just because of the movement that we're seeing here. I mean, we look at the S&P 500 when we talk about the VIX, of course.
Um and it's been kind of getting itself into this position where it's getting kind of stuck down here. Call it anywhere between 15 and 1/2 and maybe 16 and 1/2, and that's where the S&P is, and I think that's a very fair number. I mean, it's had some movement. It was down about 8% in a week, so that was something that, you know,
makes a little bit of sense there, what we're seeing. The movement of the S&P is sometimes a little bit of it at least seems to get kind of caught up in, you know, the backdrop of what's going on.
We're in this earning season, we're getting through it, things are going pretty well, and I'll tell you what, when you look at the percentage of beats for earnings and revenue, John, it's it's pretty outrageous this quarter.
Probably as good as any quarter we've had.
>> Well, I mean, what, just a couple days ago, Pete, the VXN, so the volatility metric for the Nasdaq was up pushing 29, and then it collapsed all the way back down yesterday into the 23s.
So, that's a pretty dramatic drop for, again, the Nasdaq measure of volatility, the VXN. And we'll see exactly how much more they want to push on it after we get those employment numbers from the Bureau of Labor Statistics tomorrow. All right.
I know you guys are going to love this one. Prediction confirms aliens exist.
Well, yeah, if you want to bet on that, the prediction markets have that. And in fact, you might say, well, what are the odds?
>> [laughter] >> There they are. By September 30th, it dropped 12% down to 2%. So, if you think that somebody's going to confirm that aliens exist, well, it's a very small chance. 98% winner
there, Pete, if you buy that 2% chance by the end of September.
End of December, it moves all the way up to 6%.
Now, I would highlight for you though that $64 million have been wagered on this stupid bet.
>> [laughter] >> Because if you look under that little picture of the alien on Polymarket, you'll see 64, 189, 215.
That's how much money has been actually put on whether or not aliens will show up. And I bet most of it is on betting that they will not be be declared as existing. But, you know, the world is
weird enough that maybe they're wrong.
Maybe we will get some proof that there are aliens.
>> I guess we got to define what aliens are and all the rest of that >> [laughter] >> and everything that goes into it, but yeah, you know what, John? Those numbers are bigger than some of the other numbers that we've seen over time or whatever talking about these prediction markets and, you know, looking at stuff that is is a lot more, I guess, closer
towards, if there is such a thing as normal, normal. But, this is classic.
This is absolutely classic. Now, those percentages have come down, you know, even more like you were pointing out, but I am stunned by the volume. I I really am. I I would not have guessed that those numbers would have been that big in terms of how many millions of dollars transferring into that. But, you know
what? What the hell? It sounds it's it's interesting and it's kind of fun, so why not, right?
Why not?
>> Well, let's do a little bit on SoundHound, Pete.
>> Yeah.
>> Because number one, I really do like using SoundHound. I use it a lot.
But, there are AI the SoundHound AI stock jumped dramatically. In fact, it hit I think about $8.19 early on. And then it pulled back, but it's still a lot higher than when it was just a few days ago. I mean, look at
that Thursday last week, a week ago, Pete. It was down around what? $5.70, something like that. Today it explodes all the way through eight in the pre-market. And you know, we did have some unusual activity in the name.
I mean, they came in buying calls in SoundHound. And here's a look at that, by the way. The calls that they were buying basically were those August eight calls.
And they expire tomorrow. So, as you see, the stock right now is let's call it 725, something like that. But, as you can also see beneath it it opened at 8:05, hit a high of 8:19, and so a lot
of those calls, if you were somebody that chose to buy them at 32 cents, you're probably pretty happy with that bet on the pop. But, you had to be quick. And like we always say, sell when you can, not when you have to. What do you think about the earnings though, Pete?
>> Yeah, well, the earnings are absolutely everything that we've been talking about, John, for months now since your earning season really kind of kicked off. I mean these are the second quarter earnings for these guys. Their revenue is up 45% year-over-year.
They had a record beat on revenue as well $61.9 million.
I mean so that's a record I said and then you raised the the full year for 2026 the revenue guide itself. That was raised up. They have strong growth that's going on.
Everywhere you look you just you can't punch any holes. You can say you know what? There's a good reason why this stock popped up 24% early on. It's also probably a good reason why it kind of pulled back a little bit. That's a pretty extreme move. We'll have to see how things go and how people want to read through this whole thing but yeah
it's still up what? Close to 12% or something like that John. I It's another earnings that where they absolutely crushed it and when I say crushed it yep they set their own record. So certainly I would put that in the category of crushing it. They the guidance was absolutely extraordinary. So you put all that together this is a stock that uh
like you said I like the use of this stock. I have very rarely been in the trade but um I have traded it a few times. It's a pretty interesting one and shoot these guys they did everything that they they're the folks that are holding those that stock would have wanted them to do.
They put up some huge numbers.
>> Well let's hit Iovance Pete. I O V A.
So these guys commercial biotechnology company um Iovance uh was up as much as 42 or 43% I think Pete early on.
Um record second quarter revenue of almost $100 million up 66% year-over-year. So this was a well-deserved pop. It's still holding on to about 34% gain on the session. So I O V A definitely a focus for today. What
do you think uh of the earnings, Pete?
>> Yeah, these guys again, I mean like we we talk about John. I mean, we look at these charts, the charts go up. I mean, you know, yes, there are some they're going down. There's no question about that. But overall, and you talked about it already, record Q2, so that's pretty impressive for what these guys are able to do. Their gross margins were up to
56%. I think that sounds pretty good.
They talked about their their pipeline and how positive they are on that and the fast-track designation that they've received as well. Those are all big positives. They hit a 52-week high today. I mean, they're talking about the US demand being very very strong. So, do they check pretty much every box like we've
been talking about day after day and month after month or whatever as we've gone through these earnings? Yes, I it makes a heck of a lot of sense and these guys, the demand is there. So, impressive that what they were able to put up there, John.
>> Well, this one, Pete, this next one, DataDog, um it's it's had several fantastic earnings reports and some pretty terrible ones. When they have a terrible one, it reflects very quickly on the sort of uh
numbers that Pete is not fond of, you know, things like really high PEs and things like that. But this one right now, Pete, has about a beta of 1.5, which means for every dollar the S&P moves, if that's what we're betaing this one to, it moves a dollar and a half to
the upside or downside. Um and DataDog numbers today, Pete, uh basically despite beating second-quarter estimates, uh revenue was $1.12 billion, up 36%.
Um nonetheless, they hit this thing by about 16% today. A lot of profit-taking, I guess, because if you beat on EPS as well as sales and you give good guidance and you still go down, that means people weren't real happy holding on to this thing anymore.
>> That's exactly right, John. And like you said, the revenue, they crushed it. I mean, they absolutely crushed it. It was up 36%. Their their earnings, they beat it. They beat it pretty good. Uh so, that wasn't so bad. Record highs um for the stock itself before earnings, yeah.
This stock was up well over 100% year-to-date. So, I think you're exactly right, John. What we're seeing here is, hey look, in early May this was a $150 stock.
It got up there as high as 280 and then had this big drop that it we're we're seeing in front of us right now. I think we're seeing that not only because of the momentum of the stock and, you know, it's gone up in an just incredibly fast to the lower left to the upper right.
But also, you brought up one thing that I I I thought of the same exact thing, which is, hey, I wonder what the PE is for these guys these days for DataDog. I wonder what their price-to-earnings is.
It's 111. So, that's the forward. So, it gives you a little bit of an idea. Are they quite a bit higher than normal?
Absolutely. And I think people probably were pretty sharp to take some off, not maybe all of it, but take some off and sit back and see where this thing's going next. Great earnings, that was fantastic, but they might be way in front of their skis, as we like to say.
And because of that, I I think it makes some sense why they've sold it off.
>> Well, let's finish up with another one trading to the downside hard today, Pete.
HubSpot, >> Yeah.
>> H U B S uh basically uh connections for customer-facing teams um on one platform.
Um we use HubSpot. Um I'm not saying they're perfect, uh but we use it as a company and an awful lot of other companies do, too. Well, they beat second quarter expectations revenue. So, in other words, sales as
well as adjusted EPS. And then they had the unfortunate announcement about softer than expected earnings going out a quarter and that'll always get you hit because when you when you're offering that it's
not looking as good for you going forward as it perhaps looked in the rearview mirror, people want to lighten up and 21% to the downside, that's what they're hitting this one with today, Pete.
>> Yeah, and you could see lower left, upper right, this thing did make a pretty substantial move, but the problem is exactly what you're talking about, John. I mean, that you look at Q3 and their guidance for that, that was a disappointment. That was something where the people, you know, immediately heard that and said, all right, time to get out of this thing.
They also heard about the deceleration of some of the growth that they've got, John, and that I think is a problem. I mean, it's one thing to see the accelerated growth, maybe that could have sort of moved around a little bit with the disappointment of the guidance, but that's not the case. The analysts every all those analysts started coming out, you know, afterwards, John, and
they were cutting their price targets and they were changing, you know, all these different things that the analysts do. It you know, it's one of those things that it's an afterthought and it's uh obviously you do have to wait for those numbers, but I think the really good analysts that are out there, the ones that say stuff before the earnings and let us know what to think before the
earnings. And then these guys that are doing it after the earnings, it's not really helping me a whole lot if I'm one of those people and they're saying, yeah, I'm going from a buy to a sell and I dropped the price from 180 to 110 or whatever. I mean, it's like, "Oh, okay.
Well, we're at 110. That's freaking fantastic." >> [laughter] >> Yeah.
>> That That ain't helping me a whole hell of a lot, but you know what? And there are There are analysts out there who jump out there and will say the right thing, which is what they really truly think what they're getting paid for from JP Morgan, Goldman Sachs, Morgan Stanley, whomever. So, um I just I find it pretty interesting and
I'm looking at this one down 19%. I mean, they're they're putting that thing out to the woodshed.
>> Yeah. Unfortunately for HubSpot, they are indeed, Pete, and uh most of that, again, coming from that uh lower-than-expected guidance for the next quarter or two.
>> Yeah.
>> All right.
Uh I know you're going to love this one, Pete, and I'd love to ask you, "Where are they now?" Um but there's a play in this game with Ohio State and Texas where two roommates at Ohio State, one of which left Ohio State, Mr. Ewers, and he went down to
the Longhorns and became a star down there, uh but these guys were roommates. This defensive end {slash} linebacker and uh Mr. Ewers. So, let's see if you guys can remember this in the college football playoffs.
>> It's not do or die, but it's it's close.
>> It is close.
>> Pressure comes.
Stover knocks it out and picks it up.
>> So, he runs into the roommate, smashes him from the backside, the right tackle.
Sucked it up on that one.
And he he makes it the whole way down.
And how great is that?
Look at the coach.
>> [laughter] >> THAT WAY. THAT WAY.
I THINK HE KNEW WHICH WAY.
>> YEAH, I think he knew which way, too.
I'll tell you what, John, that's a bad man, and I mean that in a positive way. That That Jack Sawyer, what a fun kid to watch play in college.
He's in the NFL with the Pittsburgh Steelers. The guy's a total stud.
And he's kind of I I think they're using him kind of as a tweener, where he's sort of an outside rusher, edge rusher, sort of almost a linebacker in some ways or whatever. So, the NFL does a lot more and more of that, where they're doing that with those outside guys. And just just to change it up sometimes, maybe they drop back or whatever. But he's a heck of a football player, and
that kid impressed me all year. It wasn't just this player this game. That That kid was was uh pretty damn special.
I'll say that. He was a >> Well, how about this, Pete? Um there was another Ohio State player that was a tweener like that that probably's wearing three or four Super Bowl rings, and uh that would be Mr. Vrabel, >> Yeah.
>> who's now coaching uh out there with the Patriots. Uh so, uh uh yeah, Ohio State gets these guys that are those tweener size guys >> Yeah.
>> on defense, because they really emphasize speed. And obviously, that kid had pretty good wheels.
>> Yeah.
>> Um he might not be a a 4-4 40 guy, but I guarantee he's pretty quick off the ball.
>> Yeah. And he's got size. So, he's got it all. I mean, you know, that's what makes this kid so damn good. And you you you know, he is a baller. He is He He plays football whistle to whistle, and maybe even beyond the whistle sometimes. Some of us kind of like that. All right, John.
Should we jump to a little bit of sports?
>> Sure.
>> All right. So, tonight, the NFL begins.
The Hall of Fame game is tonight, and uh 7:00 kickoff. Yeah, I tell you what, football is back. It's pretty exciting.
I'm actually going to be over tomorrow for a brief time, anyway, uh over with the Minnesota Vikings at their one of their practices. They were nice enough to invite me and give me the opportunity to hang around and and just see what they look like, you know, and and all that type of thing. Should be fun. But the Hall of Fame game, that's going to be pretty great. You've got Arizona
playing Carolina, John. I think that part of it's pretty cool. They're sitting out Jacolby Brissett because he is the the starter, at least as of right now. And Gardner Minshew is also somebody that I don't know if he's going to play or not. So what you know what that means?
They drafted somebody that a lot of people were were sort of surprised that they would go and grab him on the draft.
I thought it was a genius idea, quite frankly, for the Cardinals.
Um I you know, Carson Beck, yes, he's a little bit older. He's been around the the college football for quite a long time, it feels like. He's been there with Georgia. He's been there with Miami. The kid's big, tall, strong kid.
Nick Saban disciple coaches that have both coached him or whatever. I'm pretty excited for this kid. He went in the third round. I think that he's a little bit better player than maybe whatever, you know, the analysis was, which is why he was in the third round, not maybe the second round. Was he a first-rounder?
Probably not. Was he a second-rounder? I think he probably should have been. But they were fortunate enough that he was still there in the third, and so they've got him, John, and it's going to be pretty exciting. And I think the kid's going to be out of his mind excited, right? Because it's a great opportunity.
You know, usually you don't you don't you're not going to get the third-string guy getting in there to start the game, but you know, in 5 years, here was his numbers at Georgia and Miami, John. 88 touchdowns, 32 interceptions, almost 12,000 yards, and 69% completion.
Pretty damn good quarterback, I would say. What do you think?
>> Well, 30 touchdowns last year, Pete.
>> Yeah.
>> Um at Miami. And that's why he brought him right to the edge of that national championship, like we said.
Um he also threw for like 3,800 yards last year. And against obviously great competition in the SEC when he was at Georgia.
Certainly down at Miami he did himself proud and they got that close to making it over the hump and even beating Indiana. So do I give this kid a ton of credit? Yep. Could he light it up? He could. Minshew might be
wishing he was healthy enough to be in there tonight because if this kid gets four full quarters of work Pete, he he might show a lot that they can't keep him at third string much longer.
>> Right. Yeah, I think when they when they drafted him I kind of think both those two quarterbacks cuz Brissette's got a little bit gray. Let's be honest, he's been around for a while. And Minshew kind of the same thing. I think they're both very good quarterbacks or at least good quarterbacks but Carson Carson Beck
could be a very good quarterback and I think time will tell but the guy was paid a hell of a lot of money to play for Miami and Miami to your point damn near won the national championship. I mean that game was damn close so it's not like they got ran out of the building or anything like that. All right John, I've got a question for you.
NCA college football.
Who do you think could be a dark horse potential to get into the playoff this coming year? And so obviously I'm not asking for Ohio State and Oregon and those guys because those are probably pretty much locked up. But I've got two schools.
I'll I'll give you my first one and and we can you can go and do however you want to do it. I'll give you my first and my second one.
Big 12, Oklahoma State.
It's it's a school that not a lot of people pay as much attention to as maybe they should. I think that they got a great coach when they went out there um and decided to go they got 65 new transfers that came there, John. From a coach that was at North Texas and they brought in 15 of them were from North
Texas. The rest were from around the country. They have rebuilt Rome in a day.
So, I think we'll see how it plays out, but I like the coach. He's a winner. I like his analysis of players that he's brought in. It's a brand new team in a lot of different ways and they could be pretty damn interesting. So, I I get Oklahoma State from the Big 12 and I'll
say just real quick, USC from the Big 10. Because you think about the Big 10, nobody's talking about USC. They're talking about Ohio State. They they'll obviously talk even regardless, but with Michigan, Indiana, Washington, Oregon, yeah, they all get a lot of call, you know, hey, yeah, these guys are great.
People aren't talking about USC and UCLA. I think USC actually has put together a pretty damn good football.
Lincoln Riley stumbled at first, but now I think he's got the right track for USC to potentially be one of those playoff teams.
>> All right. Well, I'll throw two at you, Pete, and one you know intimately well, which is Clemson.
>> Yep.
>> Um Clemson because in the ACC, um let's be real, Pete. They don't play as many teams in the ACC um as in the SEC. That That's just a fact. You guys can argue with me if you want. I doubt if Pete will argue with me. Um but uh
that doesn't mean that it's a cakewalk.
Um but I think Clemson's got a shot.
Your boy Dabo, um I think he is a great coach. This could be a chance for him to get into those playoffs, Pete. But the number one pick for me, BYU.
>> Yes.
>> I know that's a shocker to you, though.
But you know why?
Easiest effing schedule.
>> [laughter] >> I mean, OH MY GOSH, you look at anybody that's got a shot at getting into the college football playoffs or CFP, these guys have the easiest schedule on the way there. That makes a huge difference. Because get this, they don't play Texas Tech. They don't play Case
State. They don't play Oklahoma State, the team that you were talking about beating. Now, would they have to play them uh you know, in a playoff? Yeah, but you could still Suppose you were 10 and 1, and then you had you go to the playoff and you lose to Oklahoma State or something, you could still make it in. Yeah, because again,
unlike Notre Dame, they're not an independent. Um but, they they don't have to play uh a bunch of those really good teams. Who do they have to play? Notre Dame and Utah. Now, those are not easy games, but
if you have one of the easiest schedules in the NCAA, and those are your two games that you really have to focus on, Notre Dame and Utah, I think you could kind of be ready for them. And if you split with those two, I'm not
saying they will, but if you split with those two on this schedule, I think you make it into the playoffs.
>> Yeah. Yeah, I I I don't disagree with you. I think that's a great call. As a matter of fact, I'll give you a a really, really dark horse as well, South Carolina. Last year, you and I talked about that quarterback. That quarterback was a stud. Last year, he was a dud. He didn't do it. He just He did not answer the bell. I think this year,
for whatever reason, I think he does answer the bell. He seems like he's got a new attitude. He's a great quarterback. He's a big, strong guy.
I think he's going to be really, really interesting, and that makes South Carolina pretty interesting. Because last year, for whatever reason, it didn't work but I think this year it will so I they have a shot it's a outside shot but they got a shot.
>> Well folks we appreciate you tuning in make sure you check out the rebel investors club if you go to marketrebellion.com you'll see it right there you could join and get comments from Pete from me from our analysts and so forth as well as access to let's see
pre-market IPOs in other words the anthropic of the world the and rolls and so forth it's a great spot to get great information and access even to crowd funds if you want to know what we're trading and so forth so go to
marketrebellion.com check it out and as you know we don't do the show on Fridays so Pete and I will be waiting around until Monday at what time Pete?
>> 1 p.m. Eastern John we'll be there you need to be there cuz you're going to want to know about the stocks that are moving around and obviously have some fun with some of the sports stuff as well.
>> Absolutely thanks Pete thank you everybody have a great weekend.
>> Good morning.

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