Both AppLovin and Robinhood Markets crushed earnings expectations
Software stock AppLovin Corp (NASDAQ:APP) is skyrocketing to record highs today, up 36.9% at $520.90 at last check, after the company's fourth-quarter results smashed estimates. Should these gains hold, APP will notch its fifth-straight post-earnings gain, which includes a 46.3% pop in November. Strong current-quarter revenue guidance and a handful of price-target hikes, including one from BofA Global Research to $580 from $375, are adding to the optimism as well. APP is up 771% since the start of 2024, with help from its artificial intelligence (AI) ad and search engine success. Looking to focus on ads, the outperforming tech name is selling its app business this quarter for an estimated $900 million.
Over in the options pits, AppLovin has seen 50,000 calls and 33,000 puts exchanged so far, which is already 2.8 times its average daily options volume. The weekly 2/14 565-strike call is the most popular, with new positions being opened there.
Trading platform Robinhood Markets Inc (NASDAQ:HOOD) is up 17% at $65.40 at last glance, trading at its highest levels since August 2021. The company easily beat fourth-quarter earnings and revenue expectations, reporting $1.01 billion in revenue with help from the crypto buzz following President Trump's return to office. No fewer than eight analysts lifted their price targets after the event, including Bernstein to $105 from $51. The firm also called HOOD a "best idea" for 2025. Year-over-year, the equity is up 373%.
HOOD has seen 256,000 calls and 95,000 puts cross the tape so far today -- eight times the overall options volume typically seen at this point. The weekly 2/14 65-strike call is the most active contract, where new positions are being opened.