Every quarter, publicly traded companies release their earnings reports, documents packed with financial figures, growth metrics, and forward-looking statements. These reports are critical not only for investors, but for anyone trying to understand the financial health and direction of major corporations.
But as soon as these numbers hit the wire, something interesting happens: the narrative begins to shift.
One media outlet may headline the news as a “stunning earnings beat,” while another reports it as a “disappointing miss despite record profits.” The same set of financials, yet dramatically different headlines, sometimes even contradictory. Why?
The answer lies in framing bias, a subtle but powerful form of media bias where the presentation of facts shapes how we interpret them. In financial journalism, framing bias can influence everything from stock prices to public trust, investor sentiment, and political narratives.
In this post, we’ll unpack how financial news outlets frame corporate earnings in different ways, often based on their editorial leanings or audience expectations. And we’ll show how comparing those headlines with actual SEC filings, easily accessible through platforms like SEC Filing Data, can help readers cut through the noise and uncover what’s really going on.
What Is Framing Bias in Financial News?
Framing bias occurs when a news outlet presents information in a way that emphasizes certain angles, emotions, or interpretations, often without changing the facts themselves. In political reporting, this might involve emphasizing conflict or controversy. In financial journalism, it can look like this:
- “Amazon Misses Earnings Target Despite Soaring Sales”
- “Amazon’s Revenue Surges – Investors Shrug Off Minor EPS Miss”
Both headlines might refer to the exact same earnings report, but one stresses underperformance, while the other highlights resilience. This difference in framing can subtly nudge readers’ perceptions of a company’s success, stability, or leadership.
This bias is not always intentional or malicious. Sometimes, it’s a result of:
- Editorial tone or target audience
- Pressure to generate clicks and engagement
- Preconceived narratives about the company, sector, or leadership (e.g., Elon Musk, Big Tech, oil companies)
However, the impact is real. Framing bias can:
- Affect stock price reactions
- Influence public opinion about industries or sectors
- Shape political conversations, especially when companies are involved in issues like energy, regulation, or labor
That’s why media literacy in financial reporting matters just as much as in politics or world news. The good news is, there’s a way to cut through the spin: go straight to the source.
In the next section, we’ll look at a real-world example, comparing how different news outlets framed a recent corporate earnings report, and what the SEC filing actually showed.
Case Study: Tesla Q2 2025 – Headlines vs. Reality
Here are several headlines from different outlets, followed by what Tesla actually reported. Then we’ll pull out how these frames differ, and why it matters.
What Tesla Actually Reported
From Tesla’s Q2 2025 earnings & official update:
- Tesla had revenues of about US$22.5 billion.
- Revenue dropped ~12% year‑over‑year.
- Automotive revenues dropped ~16%.
- EPS was ~$0.40 (some reports of non‑GAAP vs GAAP differences) which met or narrowly beat some analyst estimates.
- Deliveries (vehicle units) were down vs the prior year.
So the core financials: declining revenue, some metrics below prior year; but also some “beats” of conservative expectations in certain areas (like EPS or analyst guesses), plus context of macro headwinds, regulatory credit decline, etc.
How the Framing Differs & Why It Matters
- Sensational vs. Balanced: Outlets like The Verge and The Guardian lean toward dramatic language (“largest revenue decline in years,” “shaky financial year”), which can create a sense of crisis. Others (NASDAQ, Zacks, etc.) present both the positives and negatives (“surpass expectations… vs revenue decline”), giving a more nuanced view.
- Selective Emphasis: Some headlines focus just on decline metrics — revenue, deliveries falling. Others emphasize what did go well or met expectations (EPS beat, etc.). Which metric is used or omitted can change how readers perceive the overall performance.
- Risk & Future Orientation: The “vulnerable time” framing anticipates future risk, whereas others reflect more on past performance. This influences whether the narrative is retrospective or forward‑looking (or both).
- Audience and Outlet: Different outlets may cater to different audiences — tech enthusiasts vs. financial analysts vs. general public. That influences what tone or angle they pick (e.g. investor risk, consumer confidence, regulatory issues, etc.).
What the Headlines Missed
While headlines shape our first impressions, the real story is often buried in the footnotes, breakdowns, and disclosures of the actual SEC filings. Tesla’s Q2 2025 media coverage offers a clear example of this disconnect.
Many headlines zeroed in on declining revenues, describing the results as “shaky,” “disappointing,” or even “Tesla’s worst in years.” But when we look directly at the 10-Q filing and accompanying shareholder update, a more nuanced picture emerges:
What the SEC Filing Actually Shows
- Revenue Drop Explained: Yes, revenue fell ~12% year-over-year, but Tesla attributed much of this to pricing adjustments, a global slowdown in EV demand, and reduced regulatory credits. These are macro and strategic factors, not signs of operational collapse.
- Cost Efficiency Gains: The filing noted improvements in manufacturing efficiency and a reduction in cost per vehicle produced, indicators that Tesla is adjusting to margin pressures, not ignoring them.
- Future Investments: The company continued capital investments in AI, Full Self-Driving (FSD), and Dojo supercomputer infrastructure, none of which grabbed attention in media headlines, but signal long-term strategic planning.
- Liquidity Position: Despite lower revenue, Tesla ended the quarter with over $26 billion in cash and cash equivalents, reinforcing financial stability, a key factor completely overlooked in many negative stories.
- Shareholder Letter Tone: The tone of the official shareholder communication was realistic but forward-looking, emphasizing resilience and long-term focus, in contrast to headlines that fixated on immediate underperformance.
The Power of Primary Sources
Rather than relying on news summaries, some of which may be biased, incomplete, or spun. Readers, journalists, and investors can access the raw data themselves:
- Download full 10-K and 10-Q reports
- See Form 4 insider trades and Form 8-K material events
- View footnotes, cash flow breakdowns, and executive commentary
- Analyze year-over-year trends without editorial filters
Users can also set up custom filing alerts to monitor companies, insiders, or specific filing types in real time.
Key Takeaway
Financial headlines may grab attention, but SEC filings hold the truth. Media framing can emphasize fear, optimism, or controversy, often without showing the full context. By reading the actual filings (or using platforms that surface the real data), you can make better-informed decisions and avoid falling for emotionally charged narratives.
Why This Matters for Media Literacy
In an age where headlines drive social sentiment, stock movements, and political debate, it’s no longer enough to simply read the news, we need to understand how it’s being framed.
Media outlets may not fabricate facts, but through selective emphasis, emotionally charged language, and omission of context, they can shape narratives that influence how we perceive a company, industry, or economic trend. This is especially true during earnings season, when investor anticipation and market volatility run high.
That’s why financial media literacy is essential. Just like political reporting, business journalism can reflect bias, consciously or unconsciously. And just like with politics, we need tools to fact-check and analyze claims based on primary sources.
Final Thoughts
Headlines may tell part of the story, but filings tell the whole truth.
The next time a news report declares a company’s doom or triumph, take a pause. Ask yourself: What does the actual data say?
By pairing media literacy tools like Biasly with transparent filing databases like SEC Filing Data, you’ll be equipped to spot spin, challenge assumptions, and think critically, not just as a reader, but as an informed citizen in the modern economy.