The US stock market came under massive pressure, but five securities managed to gain between 14% and 31% during the main session and after its close. The Nasdaq technology index fell by 5.52% at once. Strong corporate earnings helped individual issuers hold their positions.
The wave of selling completely wiped out the post-election rally of the Dow Jones index. Investors are seriously concerned that a victory by Democratic Party representatives will lead to cuts in investment in data center infrastructure. Against this backdrop, the market capitalization of chipmaker NVIDIA fell by 9%, while Broadcom shares lost 10%. Even before the financial report was released, shares of cloud services provider Cloudflare fell by 8.3%.
Who grew amid the Nasdaq sell-off
AppLovin (APP), a developer of mobile advertising software, rose by 31.04% and closed at $356.10. The company's revenue for the third quarter grew by 55% and reached $2.18 billion. The forecast for the fourth quarter assumes revenue in the range of $2.365–2.395 billion, which is noticeably above analysts' expectations of $2.25 billion. However, in after-hours trading by 17:01 New York time, the price declined by 2.27% to $348.00.
Warby Parker (WRBY), an eyewear seller, rose by 22.55% after revenue increased by 10.4% and amounted to $244.7 million. The company announced that on November 12 it will open pre-orders for its first "smart" glasses, created jointly with Google and Samsung.
EPAM Systems (EPAM), an IT services provider, gained 21.55%, increasing the size of its buyback program by $1.5 billion. The company plans to begin an accelerated repurchase of its own shares worth $500 million per week starting November 9. Revenue grew by 2.3% to $1.426 billion, and adjusted earnings per share rose by 14% to $3.51.
Are there chances for growth to continue
Cloudflare (NET), a network infrastructure provider, jumped by at least 14% after the close of the main session. For the third quarter, revenue grew by 39% and amounted to $782.5 million — the highest growth rate in almost four years. Cloudflare forecast fourth-quarter revenue in the range of $845–846 million, while the consensus analyst forecast was $798 million.
Software supply chain management platform JFrog (ticker FROG) rose by 25% after raising its annual forecast. JFrog now expects adjusted earnings of $1.14–1.16 per share, while FactSet analysts had forecast 98 cents.
The common factor is company-specific news that came out against the backdrop of pressure on the index due to concerns about the midterm elections and artificial intelligence spending. The evening decline in AppLovin shows that gains in the main session do not always continue after the close of trading.
Cryptalist analysis: The market demonstrates a classic divergence between the macroeconomic backdrop and corporate fundamentals: investors are willing to pay a premium for confirmed revenue growth, ignoring index volatility. However, the after-hours correction in AppLovin signals the fragility of such a rally — the resilience of individual stocks will be tested if pressure on the technology sector persists. For the cryptocurrency market, such dynamics remain an indicator of risk appetite: the flow of capital into quality growth stories may temporarily limit the inflow of funds into digital assets.