Nasdaq 100: AppLovin Soars over 15% After Hours, AI Boom Lifts Cisco, Reddit Misses Key Metric

Tech Earnings Lift Nasdaq Futures as AppLovin, Cisco Rally; Reddit Slumps

The Nasdaq 100 faces a mixed trading session on Thursday following key earnings reports from AppLovin (APP), Reddit (RDDT), and Cisco Systems (CSCO).

While AppLovin and Cisco surged in after-hours trading on strong earnings and guidance, Reddit tumbled after missing user growth estimates.

The broader market is also contending with macroeconomic headwinds, including the Federal Reserve’s higher-for-longer interest rate policy and potential disruptions from Trump’s proposed tariffs.

AppLovin Surges on Strong Ad Revenue Growth

AppLovin posted a stellar Q4, with revenue surging 44% year-over-year to $1.37 billion, beating estimates of $1.26 billion. Adjusted EBITDA jumped 78% to $848 million, driven by a 73% rise in advertising revenue to nearly $1 billion. Net income soared 248% to $599 million, signaling strong profitability. The company also issued bullish Q1 guidance, forecasting revenue between $1.36 billion and $1.39 billion, above consensus expectations of $1.32 billion.

The market responded positively, with AppLovin’s stock spiking 15.03% to $438.32 in after-hours trading. This strong rally could provide a boost to ad-tech stocks and the broader Nasdaq 100 on Thursday, given the company’s significant year-over-year gains and its outperforming digital advertising peers.

Reddit Plunges on Weak User Growth Despite Revenue Beat

Reddit reported a 71% year-over-year revenue jump to $428 million, surpassing analyst expectations of $405 million. However, global daily active unique users (DAUq) reached 101.7 million, missing estimates of 103.1 million. CEO Steve Huffman attributed this to Google’s search algorithm changes, which impacted logged-out user traffic.

Despite positive earnings per share (EPS) of $0.36 (versus $0.25 expected) and strong Q1 sales guidance of $360 million to $370 million, Reddit’s stock plunged 14.08% in after-hours trading to $186.00. The weak user numbers raise concerns about long-term engagement and monetization potential. The stock’s sharp decline could weigh on social media and digital ad stocks on Thursday.

Cisco Jumps on AI-Driven Demand and Strong Guidance

Cisco Systems lifted its full-year revenue forecast to $56 billion-$56.5 billion, exceeding analyst estimates of $55.99 billion. The company reported Q2 revenue of $14 billion, beating expectations of $13.87 billion. Cisco’s AI-driven networking demand, particularly in cloud infrastructure, has fueled strong order growth.

Shares climbed 6.48% to $66.59 in extended trading, reinforcing the AI investment trend benefiting networking and cloud infrastructure stocks. This could provide a lift to the broader Nasdaq 100, especially AI-related names.

Market Outlook: Nasdaq 100 Faces Mixed Session

The Nasdaq 100 is set for a volatile session on Thursday. AppLovin and Cisco’s strong earnings and bullish guidance could provide a lift, while Reddit’s sharp selloff may create pressure on digital advertising stocks. Broader market sentiment remains cautious amid ongoing macroeconomic risks.

The Fed’s “higher for longer” stance on interest rates continues to weigh on growth stocks, particularly tech names with high valuations. Meanwhile, the possibility of new tariffs under a Trump presidency could impact supply chains, particularly in hardware and semiconductor sectors. Traders should watch for sector rotation, with AI infrastructure and ad-tech leading gains, while social media and consumer tech face downside risks.

More Information in our Economic Calendar.