AppLovin tanked 16% in a single session after flubbing second-quarter revenue and EBITDA targets, then spooked markets with lukewarm third-quarter guidance. That's the story playing out across storage and memory names. SanDisk dropped 9% despite a stunning 372% revenue jump year-over-year, because the company forecast Q1 results below what Wall Street wanted. Western Digital fell 14% even after beating earnings, its 176% year-to-date rally finally hitting a wall as profit-taking kicked in.
The rotation hit memory stocks hardest. Micron slipped 3.4%, Seagate gave back 3.9%. Celestica got hammered 13% after pricing a $3 billion equity offering at $310 per share, a move designed to fund AI infrastructure expansion that investors read as dilution. When you're raising that much capital at once, the market punishes the stock immediately.
Winners emerge in the noise
SoundHound AI bucked the selloff with a 24% surge after posting 45% year-over-year Q2 revenue growth to $61.9 million. The kicker was guidance. Management raised full-year expectations to $230-260 million and promised another update after closing its LivePerson acquisition. That's the kind of forward momentum that moves needle in a choppy market.
Moderna also climbed 3.5% on FDA approval for mFLUSIVA, its new influenza vaccine. Meanwhile the Dow Jones Industrial Average kept grinding toward a fourth consecutive closing high, signaling that blue-chip stability remained intact even as growth names took fire.
This article is informational only and should not be considered investment advice. Markets move on sentiment and guidance misses as much as actual results.
