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👉 Week in Review — Too Long; Didn’t Read:
Key Earnings Announcements:
Dick’s Sporting Goods’ acquisition of Foot Locker should come with $125M of synergies in 2026.
Adobe’s CEO is stepping down.
Rubrik’s free cash flow 10X’d in 2025.
Investor Events / Global Affairs:
The Strait of Hormuz crisis sends oil past $100 and triggers the largest strategic reserve release in history.
Live Nation settles its antitrust case with the DOJ and avoids a breakup.
Oracle's blowout earnings offer a rare bright spot for battered software stocks.
Economic Updates:
GDP is revised sharply lower to just 0.7% growth.
PCE inflation comes in largely in line but core remains sticky at 3.1%.
👉 Portfolio Updates
The Dividend Growth Portfolio (shown above) is roughly moving with the S&P 500 at the moment, with blended YTD performance hovering around -3%.
The Magnificent Seven (Long Technology subsection) is down, as illustrated by the MAGS ETF. No worries there, as there’s no reason to be bearish on Big Tech over the long haul.
The high-beta tech names (Long Risky) in my portfolio are getting smoked as the SaaSpocalypse continues to ripple through the market. After seeing Rubrik’s strong quarter, I’ll nibble more there. I believe there are countless names in this subsection worth buying at these prices (Uber, Shopify, Rubrik, Robinhood, etc.), knowing where AI will take them over the coming 18-36 months.
The Dividend Growth Stocks subsection is outperforming the S&P 500 to no one’s surprise YTD, with names like Kroger (+22%), Pepsi (+16%), Realty Income (+15%), Analog Devices (+13%), Coca-Cola (+12%), and Waste Management (+9%) leading the pack. This is why it’s so important to be diversified. Notice I have a goal of a 30% weighting for these names, though I am currently only sitting at 22%. I knew heading into 2026 that the market was going to reward “boring,” and that’s exactly what we’re seeing.
The Monthly Income Portfolio, powered by NEOS Funds SPYI, QQQI, and BTCI, continued to do everything right — paying me tax-efficient income. I’ve talked about Bitcoin being in a bear market for several weeks now, and I continue to believe that’s the case despite this little rally we’ve experienced. I think the smartest way to DCA into Bitcoin in 2026 will be through BTCI, considering its ~28% annual distribution yield. If Bitcoin drops by 28% from here to $52.5K or so, BTCI’s yield should really help offset that price action.
The Energy + International names are interesting because, right now, this bunch of ETFs is down -4%, which is very close to the DCA average of VOO shown above (down -4.27%). I believe their outperformance will really begin to shine as the turmoil we’re seeing in the Middle East gets wrapped up (hopefully) sooner rather than later. International should outperform domestic in 2026, and when you sprinkle energy on top of that, it’s even better (hence MLPI).
This last bucket is essentially a ton of cash plus energy names like USO, XLE, VDE, XOM, OXY, GPRE, and a few others. I'm simply showing you that while the S&P 500 dropped 3% over the last month, we’ve generated +4% of alpha against that volatility. Let’s see if we can keep it up!
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👉 Best and Worst ETF Performers of the Week
👉 Key Earnings Announcements:
Dick’s Sporting Goods’ acquisition of Foot Locker should come with $125M of synergies in 2026, Adobe’s CEO is stepping down, and Rubrik’s free cash flow 10X’d in 2025.
Dick’s Sporting Goods (DKS)
Key Metrics
Revenue: $6.2 billion, an increase of +60% YoY
Operating Income: $186.8 million, compared to $385.5 million last year
Profits: $128.0 million, compared to $300.0 million last year
Earnings Release Callout
“We closed the year with another strong quarter for the DICK'S business, delivering comps over 3% and double-digit non-GAAP EPS growth. We are applying our proven playbook to the Foot Locker business and making the choices we believe will create the most long-term value for our shareholders. We believe that Foot Locker's inventory is now well positioned.”
My Takeaway
Dick's Sporting Goods showcased the immediate scale and power of its newly combined empire following the acquisition of Foot Locker. Their core consumer remains incredibly resilient despite broader macroeconomic pressures. While the market had to digest messy GAAP accounting metrics due to heavy integration charges, the underlying fundamentals of the business are stronger than ever.
Dick's reported a massive 60% surge in total revenue to $6.23 billion, a direct result of adding Foot Locker's top line to the mix. However, the profitability metrics took an “optical” hit. GAAP operating income fell roughly -51% to $187 million, and GAAP net income dropped -57% to $128.3 million. This was entirely expected and deliberately executed; management absorbed $235.5 million in pre-tax restructuring and inventory write-down charges to aggressively clean up Foot Locker's balance sheet right out of the gate.
The core Dick's brand is an unstoppable force. Comparable sales grew 3.1%, driven by more customers walking through the doors and spending more money per trip. On the Foot Locker side, while pro-forma comps were down 3.4%, this actually beat management's internal projections. The company remains highly cash-generative, allowing them to raise their dividend for the 12th consecutive year and earmark $1.5 billion in capital expenditures to rapidly expand their highly successful "House of Sport" retail concepts across the country.
The core message to Wall Street was simple: the heavy lifting of the merger is done. With the inventory optimized, Dick's is now turning its attention toward capturing $100 million to $125 million in procurement synergies and driving actual top-line growth at Foot Locker. Looking ahead, the company is guided for $22.4 billion in consolidated sales — positive growth for both Dick’s and Foot Locker.
No position.
Adobe (ADBE)
Key Metrics
Revenue: $6.4 billion, an increase of +12% YoY
Operating Income: $2.4 billion, an increase of +12% YoY
Profits: $1.9 billion, an increase of +4% YoY
Earnings Release Callout
“Adobe delivered record Q1 results with AI-first ARR more than tripling year over year and subscription revenue growing 13 percent. Our mission to empower everyone to create represents an even larger opportunity as content powers all experiences in the AI era.”
My Takeaway
Adobe beat Wall Street's estimates on both the top and bottom lines, proving that its core creative and marketing customers are willing to pay a premium for AI-enhanced workflows. However, the real news was the bombshell announcement that their CEO Shantanu Narayen plans to step down — causing the stock to dip after hours.
Turning to financials — despite their profits only growing by +4% to $1.9 billion, their aggressive share repurchase program allowed GAAP earnings per share to jump 11%. ARR from AI-first offerings more than tripled year-over-year, and Firefly-specific billings jumped 75% sequentially. The company also surpassed a staggering 850 million monthly active users across its ecosystem.
The company produced a record $2.96 billion in operating cash flow during the quarter — allowing management to repurchase 8.1 million shares of stock during the quarter. With over $22 billion in Remaining Performance Obligations sitting on the books, Adobe has unparalleled visibility into its future cash flows.
Looking ahead, Adobe guided to $6.5 billion in revenue in 2026.
No position.
Rubrik (RBRK)
Key Metrics
Revenue: $377.7 million, an increase of +47% YoY
Operating Loss: -$85.0 million, compared to -$113.0 million last year
Net Loss: -$87.0 million, compared to -$114.9 million last year
Earnings Release Callout
“Let me start by saying we ended the year with a spectacular Q4 that significantly exceeded our expectations. We accelerated net new subscription ARR growth to a record $115 million. For the full fiscal year, we generated tremendous free cash flow of about $238 million, which is more than 10 times the free cash flow for the prior fiscal year. This is a clear indication that we are indeed laying the foundation of a long-term, highly profitable growth business."
My Takeaway
Rubrik delivered a strong Q4 report that established the company as a dominant force in the converging worlds of cybersecurity and data management. By crushing Wall Street’s expectations across revenue, ARR, and cash flow, the company proved that its "Zero Trust Data Security" platform is a must-have for modern enterprises.
Rubrik posted total revenue of $377.7 million. The GAAP net loss narrowed by 24% down to $87.0 million, proving that revenue is scaling much faster than expenses. When removing non-cash stock-based compensation, Rubrik actually delivered a surprise Non-GAAP profit of $0.04 per share.
Cloud ARR surged 48% to represent almost 90% of the company's total subscription base. Rubrik is also successfully moving upmarket, with the number of customers paying over $100,000 annually jumping 25%. Rubrik generated nearly $238 million in free cash flow for the full fiscal year — 10X increase year-over-year. Operating at an 84% Non-GAAP gross margin allows the vast majority of their incremental revenue to fall straight through to cash generation. Management also proudly touted a competitive win rate of over 90%, signaling that when Rubrik gets into a room with a CIO, they almost never lose.
Looking ahead, Rubrik guided for $1.6 billion in revenue and full year of non-GAAP profitability.
Long RBRK.
👉 Investor Events / Global Affairs:
The Strait of Hormuz crisis sends oil past $100 and triggers the largest strategic reserve release in history, Live Nation settles its antitrust case with the DOJ and avoids a breakup, and Oracle's blowout earnings offer a rare bright spot for battered software stocks.
Oil Surges Past $100 as Hormuz Blockade Triggers Largest Emergency Reserve Release in History
Brent crude surpassed $100 per barrel this week for the first time since August 2022 — peaking near $126 at its highest — as Iran's near-total blockade of the Strait of Hormuz created the largest oil supply disruption in modern history. Roughly 20 million barrels per day of seaborne crude normally transits the strait, and an estimated 16 million barrels per day have been stranded behind the chokepoint since the U.S.–Israeli military strikes against Iran began on February 28.
The International Energy Agency responded by announcing a record release of 400 million barrels from member nations' strategic petroleum reserves — the largest coordinated drawdown ever — with the U.S. contributing approximately 172 million barrels. Japan said it would begin releasing national stockpiles as early as next week, citing an "exceptionally high level of dependence" on the Middle East, while Germany and Austria pledged their own reserve contributions. Treasury Secretary Scott Bessent added that the U.S. would temporarily allow countries to purchase Russian oil already at sea.
Despite the coordinated response, energy analysts warned that even the IEA's maximum drawdown capability cannot fully offset the nearly 20 million barrels per day normally flowing through the strait. U.S. retail gasoline prices have already surged more than 21% to $3.63 per gallon since the conflict began, according to AAA. WTI crude closed Friday around $98 per barrel, with Brent near $103. For markets, the question is no longer just about price — it's about duration. If tanker traffic doesn't resume within weeks, the inflationary shock will feed directly into consumer prices, corporate margins, and growth forecasts at a time when the economy is already decelerating.
"This is a major action aiming to alleviate the immediate impacts of the disruption in markets. But to be clear, the most important thing for a return to stable flows of oil and gas is the resumption of transit through the Strait of Hormuz."
Live Nation Settles DOJ Antitrust Case, Avoids Ticketmaster Breakup
Mario Tama | Getty Images via CNN Newsource
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