What Happened?

A number of stocks jumped in the afternoon session after blockbuster quarterly results from tech titans Apple and Amazon boosted investor confidence, supported by impressive earnings from key cloud and crypto leaders, Cloudflare and Coinbase. 

Amazon's shares surged after reporting that its cloud computing division, Amazon Web Services (AWS), saw revenue jump 20% year-over-year to $33 billion. This accelerated growth is largely attributed to the high demand for computing power required for artificial intelligence applications. Apple also contributed to the positive sentiment, topping its own quarterly estimates and forecasting a record-breaking holiday quarter. The strong performance from these industry leaders has lifted the broader market. 

Impressive results from key cloud and crypto leaders, Cloudflare and Coinbase strongly supported the broader tech momentum. Cloudflare reported a "beat and raise" quarter with revenue soaring 30.7% year-over-year to $562 million and billings jumping nearly 40%, signaling strong future growth. Its non-GAAP operating margin expanded to 15.3%, and Free Cash Flow grew by nearly 60%, confirming management's efficient execution, leading the company to raise its full-year EPS guidance. Concurrently, Coinbase's third-quarter results also significantly topped estimates, driven by better-than-expected trading revenue and the increasing adoption of its stablecoin, USDC. The company reported $1.87 billion in revenue and an adjusted EPS of $1.44, while its strategic acquisition of Deribit advanced its "Everything Exchange" vision, resulting in over $840 billion in derivatives trading volume and aggressive expansion across the crypto market.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Advertising Software company AppLovin (NASDAQ: APP) jumped 2.9%. Is now the time to buy AppLovin? Access our full analysis report here, it’s free for active Edge members.
• Hospitality & Restaurant Software company Toast (NYSE: TOST) jumped 5%. Is now the time to buy Toast? Access our full analysis report here, it’s free for active Edge members.
• Content Delivery company Fastly (NYSE: FSLY) jumped 2.8%. Is now the time to buy Fastly? Access our full analysis report here, it’s free for active Edge members.
• HR Software company Asure Software (NASDAQ: ASUR) jumped 2.8%. Is now the time to buy Asure Software? Access our full analysis report here, it’s free for active Edge members.
• Data Analytics company Samsara (NYSE: IOT) jumped 2.9%. Is now the time to buy Samsara? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Toast (TOST)

Toast’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 21 days ago when the stock dropped 4.5% on the news that President Donald Trump threatened to impose 'massive' tariffs on Chinese products, reigniting trade war fears. In a social media post, Trump stated the move was a potential countermeasure to China 'becoming very hostile,' following Beijing's announcement of new export controls on rare-earth minerals. These minerals are critical components for magnets used across the automotive, electronics, and defense industries. The unexpected development jolted Wall Street, which had been trending higher. The news sent all major indices into negative territory, with the tech-rich Nasdaq Composite falling 1.7%, the S&P 500 dropping 1.3%, and the Dow Jones Industrial Average declining by 0.9%.

Toast is down 1% since the beginning of the year, and at $36.00 per share, it is trading 27% below its 52-week high of $49.30 from August 2025. Investors who bought $1,000 worth of Toast’s shares at the IPO in September 2021 would now be looking at an investment worth $575.88.

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