Today’s Market Movers: AppLovin, SanDisk, and Western Digital Lead Stock Losses

TLDR

• AppLovin dropped 16% after missing Q2 revenue and EBITDA expectations with soft Q3 guidance
• SanDisk fell 9% on mixed Q1 guidance despite a 372% year-over-year revenue surge
• Western Digital tumbled 14% on profit-taking despite beating earnings estimates
• SoundHound AI jumped 24% after reporting strong Q2 results and raising full-year guidance
• Moderna rose 3.5% after FDA approved its new mFLUSIVA influenza vaccine

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Investors rotated out of tech stocks on Thursday, sending several major names sharply lower while blue-chip stocks held up. The Dow Jones Industrial Average was on track for a fourth straight closing high.

AppLovin was the day’s standout loser, dropping 16% after the ad-tech company missed second-quarter revenue and EBITDA expectations. The company guided for third-quarter revenue of $2.05 billion to $2.08 billion, roughly in line with estimates but not enough to satisfy investors after a strong run.

AppLovin and Memory Stocks Take the Biggest Hits

SanDisk slid around 9% despite reporting fiscal fourth-quarter revenue that surged 372% year over year to $8.97 billion. The problem was guidance. Its first-quarter revenue forecast midpoint came in below Wall Street estimates, which overshadowed otherwise strong results.

Sandisk Corporation, SNDK

Western Digital dropped 14% even though it beat expectations. The company reported fiscal fourth-quarter revenue up 44% year over year to $3.75 billion, with adjusted earnings per share of $3.56 beating estimates. Strong first-quarter guidance also topped consensus, but the stock had already rallied 176% year to date, and profit-taking set in.

Other memory-related names also fell. Micron slid 3.4% and Seagate declined 3.9%, following the broader weakness in storage and memory stocks.

Celestica dropped 13% after pricing a $3 billion equity offering at $310 per share. The company said proceeds would go toward expanding its global AI infrastructure business, but investors reacted negatively to the dilution.

SoundHound AI and Moderna Buck the Trend

SoundHound AI was a rare bright spot, surging 24% after reporting second-quarter revenue of $61.9 million, up 45% year over year. The company posted an adjusted loss of $0.02 per share, well ahead of expectations, and raised its full-year revenue guidance to between $230 million and $260 million.

Management said guidance would be updated again after completing its acquisition of LivePerson.

Moderna also gained ground, rising 3.5% after the FDA approved its mFLUSIVA vaccine, a new shot targeting seasonal influenza.

The broader market saw investors pulling money from tech and moving it toward more traditional blue-chip names. Futures were cautious early in the session as traders also watched for developments around a potential U.S.-Iran peace framework and a partial reopening of the Strait of Hormuz.

SoundHound’s gains showed that strong earnings could still drive big moves higher, even in a market where several well-performing stocks were being sold off on good results.

The day reflected a market in rotation mode, rewarding earnings beats in some names while punishing others despite strong underlying numbers.