5 Stocks Gained 14% or More During the Nasdaq Selloff. Here Is Why
Five US stocks rose 14% to 31% on Thursday amid a 5.52% Nasdaq selloff, driven by strong earnings. AppLovin (APP) gained 31% on 55% revenue growth and raised Q4 outlook. Warby Parker (WRBY) rose 22.55% on 10.4% revenue growth and new product launch. EPAM Systems (EPAM) gained 21.55% after a $1.5B buyback authorization increase. Cloudflare (NET) jumped 14% after-hours on 39% revenue growth. JFrog (FROG) popped 25% after raising full-year earnings outlook.
How this was made
The 30-second read
Why it matters
Earnings surprises provide localized upside in a broadly bearish environment.
Market read
Earnings beats create short‑term buying opportunities despite a market‑wide selloff.
What to watch
Potential supply‑chain constraints for smart‑glass production could temper Warby Parker's upside.
Background
Nasdaq fell 5.5% on concerns about AI spending, but a handful of earnings beats lifted select stocks.
Ticker impact
AppLovin reported Q3 revenue up 55% and raised Q4 outlook above expectations, driving a 31% rally.
upward pressure as the market prices in the earnings beat and higher guidance
Revenue beat and guidance above consensus typically attract buying interest.
Warby Parker posted 10.4% revenue growth and announced pre‑orders for smart glasses, sending the stock up 22.5%.
upward pressure from continued demand and product excitement
Growth and product news are positive catalysts, though execution risk remains.
EPAM added $1.5 bn to its buyback and posted modest revenue growth, lifting the stock 21.5%.
upward pressure as investors view the buyback as value‑supportive
Buyback announcements often lead to short‑term price gains.
Cloudflare posted 39% Q3 revenue growth and raised Q4 guidance, prompting a 14% after‑hours jump.
upward pressure as the market digests the earnings beat
Revenue acceleration and guidance lift are clear bullish signals.
JFrog raised its full‑year outlook, boosting the stock 25% on the news.
upward pressure from the upgraded outlook
Guidance upgrades are a primary driver of short‑term upside.
Market effects
Tech and software services sector gains from multiple earnings beats, suggesting broader momentum.
U.S. market sees a rebound in Nasdaq‑heavy names despite broader selloff.
Positive earnings across several US tech firms may offset global AI‑spending concerns.
Counterpoint
The after‑hours pullback in AppLovin hints that the rally may be overstretched.
Key entities
- companyAppLovin
Mobile advertising software firm
- companyWarby Parker
Eyewear retailer
- companyEPAM Systems
IT services provider
- companyCloudflare
Internet security and infrastructure firm
- companyJFrog
Software supply‑chain platform
