Five Stocks in the US Rose by 14–31% Despite Nasdaq's 5.52% Decline

The American stock market faced significant pressure on November 5, with the Nasdaq technology sector index dropping by 5.52%. However, five stocks rose by 14–31% during the main session and after its close, supported by positive corporate earnings reports.

The wave of selling completely wiped out the post-election rise of the Dow Jones. Investors are concerned that the Democratic Party's victory will lead to cuts in data center infrastructure investments. Against this backdrop, chipmaker NVIDIA's market capitalization fell by 9%, and Broadcom's shares lost 10%. Even before the report was released, shares of cloud services provider Cloudflare fell by 8.3%.

AppLovin (APP), a mobile advertising software developer, rose by 31.04% and closed at $356.10, according to Yahoo. Revenue for the third quarter increased by 55% to $2.18 billion. The forecast for the fourth quarter is $2.365–2.395 billion, compared to analysts' expectations of $2.25 billion. Over five days, the stock gained nearly 50%. However, in after-hours trading by 5:01 PM New York time, the price decreased by 2.27% to $348.00.

Warby Parker (WRBY), an eyewear retailer, rose by 22.55%: revenue increased by 10.4% to $244.7 million. The company announced that it will open pre-orders for its first "smart" glasses, created in collaboration with Google and Samsung, on November 12.

EPAM Systems (EPAM), an IT services provider, gained 21.55%, increasing its share buyback program by $1.5 billion. The company plans to start an accelerated buyback of $500 million per week on November 9. Revenue increased by 2.3% to $1.426 billion, and adjusted earnings per share rose by 14% to $3.51.

Cloudflare (NET), a network infrastructure provider, jumped at least 14% after the close of the main session. Revenue for the third quarter grew by 39% to $782.5 million, the highest growth rate in nearly four years. The forecast for the fourth quarter is $845–846 million compared to the consensus of $798 million.

The software supply chain management platform JFrog (FROG) rose by 25% after raising its annual forecast. Adjusted earnings are expected to be in the range of $1.14–1.16 per share, compared to the 98 cents forecasted by FactSet analysts.

The common factor was news from individual companies emerging amid pressure on the index due to concerns about the midterm elections and AI spending. The evening decline of AppLovin shows that the growth of the main session does not always continue after the market closes.