Watch AppLovin, Figma, and WDC
AppLovin (APP) reported Q3 revenue of $1.92B (+52.4% Y/Y) and GAAP EPS of $3.77, but shares fell over 20% initially. Figma (FIG) posted Q2 revenue of $370.08M (+48.2% Y/Y) and non-GAAP EPS of $0.08, with Q3 revenue guidance of $373M to $375M, and the stock may open down ~15%. Adobe (ADBE) is mentioned as an alternative.
How this was made
The 30-second read
Why it matters
It highlights reported revenue and EPS figures and projects/notes large immediate price reactions, implying traders should reassess expectations for growth, profitability, and forward revenue.
Market read
Earnings prints are being interpreted through the lens of sharp selloffs and expected open gaps, making near-term trading risk elevated for APP and FIG.
What to watch
No details are provided on guidance beyond Figma’s Q3 revenue range, nor on margins, cash flow, or segment performance, which are often the true drivers of post-earnings repricing.
Background
The piece is a Thursday morning wrap focused on technology stock weakness following earnings from AppLovin and Figma.
Ticker impact
AppLovin posted Q3 results with revenue up 52.4% Y/Y to $1.92B and GAAP EPS $3.77, initially sending shares down over 20%.
Near-term volatility likely remains elevated as traders reassess the earnings reaction and any implied guidance or margins not detailed here.
The article provides hard earnings figures and the magnitude/direction of the immediate market reaction, but does not disclose the specific driver of the drop (e.g., guidance, margins, or commentary).
Figma’s Q2 results showed revenue up 48.2% Y/Y to $370.08M, but the article expects the stock to open down around 15% after results.
Downside pressure at the open is plausible given the article’s stated expected move, with follow-through depending on how traders interpret Q3 revenue guidance.
The text includes Q2 revenue growth, non-GAAP EPS of $0.08, and Q3 revenue guidance ($373M to $375M), which are sufficient to frame a valuation/expectations reset, but it does not provide consensus comparisons or the exact reason for the expected 15% drop.
Market effects
Weakness in ad-tech and software names after earnings can pressure sentiment across high-growth tech, especially where investors prioritize profitability and forward expectations.
Primarily US-listed tech sentiment spillover during Thursday morning trading.
Limited, as the article focuses on company-specific earnings reactions rather than global macro or cross-border policy.
Counterpoint
The article argues APP should rebound after peers rose, but the initial 20% drop suggests there may be a deeper issue (guidance, margins, or commentary) that could cap any quick mean reversion.
Key entities
- companyAppLovin
Reported Q3 results with $1.92B revenue (+52.4% Y/Y) and GAAP EPS $3.77, with shares initially down over 20%.
- companyFigma
Reported Q2 results with $370.08M revenue (+48.2% Y/Y) and non-GAAP EPS $0.08, with Q3 revenue guidance $373M to $375M.
- companyAdobe Systems
Mentioned as a potential alternative position versus Figma, but no new company-specific disclosure is provided.
