The seemingly random drop in technology stocks continues in Thursday morning trading.
Last night, AppLovin (APP) posted third-quarter results. Shares initially fell by over 20% in reaction to the strong revenue growth of $1.92 billion (+52.4% Y/Y). GAAP EPS of $3.77 is above consensus.
Investors familiar with AppLovin’s growth will take advantage of the stock’s weakness. After ad firms like Omnicom (OMC) and Zeta Global (ZETA) traded higher after their results, APP stock should rebound.
Figma (FIG) might open down by around 15% after it posted Q2 results. The software firm posted revenue growing by 48.2% Y/Y to $370.08 million. Non-GAAP EPS was $0.08. In Q3, Figma is expecting revenue between $373 million and $375 million.
Investors potentially accumulated Adobe Systems (ADBE) in the last few weeks instead of buying FIG stock. Shareholders might have sold Figma to build a position in Adobe. ADBE stock is still in value territory.
WDC (WDC), a storage supplier, fell by nearly 12% in after-hours trading. It reported non-GAAP EPS of $3.56. Revenue grew by 43.7% Y/Y to $3.75 billion. The firm is forecasting Q1/2027 revenue of up to $4.1 billion. Value investors potentially sold WDC stock and bought Micron (MU) instead. Micron has healthy bookings for at least three years, plus the stock trades at better value from a P/E standpoint.
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