Tech Stocks Tumble After-Hours as Weak Guidance Overshadows Earnings Beats

A number of companies saw significant stock price moves in after-hours trading following the release of their latest quarterly earnings reports. Investors focused heavily on forward-looking guidance and existing valuations, punishing several firms, including AppLovin and HubSpot, for outlooks that failed to meet high expectations.

Guidance and High Expectations Drive Sell-Offs

Several companies experienced sharp declines despite reporting solid quarterly performance, as their future guidance or high valuations concerned investors.

• AppLovin (APP): Shares cratered 22% after the company posted second-quarter revenue of $1.92 billion, narrowly missing analyst estimates. Its third-quarter revenue guidance of $2.055–$2.085 billion also failed to satisfy investor expectations for stronger growth.
• HubSpot (HUBS): The stock dropped 14% after it issued a full-year revenue outlook of $3.68–$3.69 billion, which trailed the Wall Street consensus. The conservative forecast overshadowed a second-quarter earnings beat.
• Figma (FIG): Shares tumbled 17% in a sell-off attributed to high valuation metrics. The move came even as the company topped Wall Street targets for its second-quarter results and provided upbeat Q3 sales guidance.
• Fluence Energy (FLNC): The energy storage firm plummeted 22% after missing Q2 estimates and reporting a loss per share of ($0.24), compared to an expected profit. Fluence also significantly slashed its full-year revenue guidance, citing project delays.

Profit-Taking Hits Data Storage Sector

Even a classic "beat-and-raise" performance wasn't enough to support some stocks that have seen significant gains recently, as investors appeared to lock in profits.

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Western Digital (WDC) fell 9.5% despite posting a strong fiscal Q4 earnings beat and issuing Q1 2027 guidance that was above expectations. Similarly, SanDisk (SNDK) slid 4% despite delivering blowout Q4 results and offering upbeat Q1 revenue guidance. The pullbacks were widely seen as profit-taking following a major run-up in data storage and memory stocks leading into the reports.

Other Notable Movers

Reactions were mixed across other sectors, with a voice AI company surging while delivery and real estate platforms declined.

• SoundHound AI (SOUN): The stock was a bright spot, surging 13% after reporting a narrower-than-expected Q2 loss and revenue that easily topped analyst forecasts, driven by new customer deployments.
• DoorDash (DASH): Shares fell 5%. While the company matched Q2 earnings and beat on revenue, investors reacted negatively to management's commentary on seasonal cost increases expected in the fourth quarter.
• Zillow Group (Z): The stock declined 6%. Despite beating Q2 estimates, the company's outlook remains clouded by high mortgage rates and depressed housing market transaction volumes.