During an active after-hours trading on May 7, some technology and entertainment firms had meaningful stock movements when their quarterly earnings reports were announced. Prominently, AppLovin, Arm Holdings, Flutter Entertainment, and Fortinet were the most active among them, as investors moved quickly to react to their financial reports and outlook statements.
AppLovin (NASDAQ: APP)
AppLovin shares climbed more than 16% in after-hours trading following the mobile ad technology firm to a $353.97 high after it reported strong first-quarter results. The firm generated 71% year-over-year ad revenue growth at $1.16 billion, topping its forecast of $1.05 billion. Overall revenue rose 40% to $1.48 billion, above Wall Street’s prediction of $1.38 billion. Earnings per share were $1.67, topping the $1.44 consensus of Wall Street. AppLovin also reported the $400 million sale of its mobile gaming business to Tripledot Studios, gaining around 20% stake in the latter. AppLovin has been identified by analysts as a leading enterprise-software pick, with them pointing towards growth opportunities from its new platform for small e-commerce merchants. Arm Holdings (NASDAQ: ARM)
Arm Holdings lost more than 8% of its value in after-hours trading, with the stock dipping to $113.97 from the standard trading close of $124.19.
British chip maker reported stronger-than-forecast fiscal fourth-quarter profits, with adjusted profit of 55 cents a share on revenue of $1.24 billion. But the company gave lower guidance for the next quarter, predicting earnings of 34 cents per share on revenue of $1.05 billion, short of Street estimates. CEO Rene Haas tied the conservative projection to doubt coming from global trade tensions and potential slippage in large licensing agreements. Flutter Entertainment (NYSE: FLUT) Flutter Entertainment’s stock had modest after-hours activity following its first-quarter 2025 earnings release.
It reported sharply higher net income, reporting $335 million vs. a net loss of $177 million for the same quarter the prior year.
Revenue increased 8% to $3.665 billion on an 8% rise in average monthly players to about 114,880. Though the results were encouraging, earnings per share of $1.59 were less than the estimated $2.05, and revenue was less than the estimated $3.96 billion, which affected investor mood. Fortinet (NASDAQ: FTNT) Fortinet shares fell 7.8% in after-hours trading after the cybersecurity company gave guidance that was less than analysts’ expectations. The company beat earnings estimates for the first quarter, but investors worried about the second half of the year. Fortinet’s conservative guidance is due to difficulties in the cybersecurity space, such as rising competition and changing threats. Investing.com
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Other Notable After-Hours Movers
Zillow Group (NASDAQ: ZG): Lost 4% after the firm’s guidance failed to impress investors.
Carvana Co. (NYSE: CVNA): Saw a minimal increase of 0.14% in after-hours trading.
Conclusion
The extended trading session of May 7 underscored the market’s sensitivity to corporate guidance and earnings. AppLovin and Flutter Entertainment led the way with healthy performance, while Arm Holdings and Fortinet came under investor scrutiny for conservative guidance. As earnings season unfolds, investors will remain keenly interested in these events, refining their strategies to accommodate the changing financial environment.
