Frantic stock selling led to investors punishing even the strongest firms.
On Thursday, AppLovin (APP) dropped by nearly 20% to extend its downtrend. It earned $3.24 a share (GAAP), with revenue jumping by 66% Y/Y to $1.66 billion. Its revenue forecast for this quarter is also strong, at up to $1.775 billion.
AppLovin is achieving strong gross merchandise volumes. It will expand into new transactional verticals. Justifying the stock’s modest price-to-earnings multiple of 45.5 times (GAAP). Still, markets are worried that the ad platform technology faces competition from bigger firms like Alphabet (GOOG). Fortunately, AppLovin has an 84% adjusted EBITDA margin. That is higher than Meta Platforms (META), which is in the 55% range.
Baxter International (BAX) lost nearly 16% on Thursday. In Q4, non-GAAP EPS of $0.44 fell from $0.58 last year. In 2026, non-GAAP EPS of $1.85 to $2.05 is below the $2.25 consensus.
Tyler Technologies (TYL) shares broke down yesterday. TYL stock fell by 15.4% after posting a 6.3% Y/Y increase in revenue, to $575.2 million. Results missed expectations after the firm took a one-time reserve to cover potential litigation expenses from a previously disclosed contract dispute.
TYL stock peaked at over $600 last August and closed at $287. The stock momentum is very weak, suggesting more downside ahead.
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