Tech Stocks Soar Despite Market Correction Amid Economic Concerns

NEW YORK, N.Y. — Several tech stocks saw significant gains Thursday morning, defying a broader market correction that has erased trillions in value from major indexes. Among the biggest movers was Rubrik, with shares soaring 18.5% after surpassing Wall Street expectations for its fourth-quarter earnings.

Rubrik reported an adjusted loss of 18 cents per share, which was considerably better than the 39-cent loss predicted by analysts surveyed by LSEG. The company also reported revenue of $258 million, exceeding estimates of $233 million. “We are pleased with our financial performance and look forward to further growth,” said Rubrik CEO Bipul Sinha.

In another notable gain, shares of Ulta Beauty jumped 7% after the retailer announced its fourth-quarter earnings surpassed expectations. Ulta’s earnings came in at $8.46 per share, beating the LSEG consensus estimate of $7.12 per share, with revenue hitting $3.49 billion compared to the forecasted $3.46 billion. Despite the strong figures, Ulta issued cautious guidance for the upcoming year.

Similarly, DocuSign’s stock increased more than 9% after reporting adjusted earnings of 86 cents per share on $776 million in revenue, both surpassing forecasts of 85 cents and $761 million. “Our results underscore the strategic value of our solutions as organizations continue their digital transformation,” said DocuSign CEO Allan Thygesen.

On the other hand, Li Auto, a Chinese electric vehicle manufacturer, saw a nearly 6% drop in U.S.-listed shares after posting a decline in fourth-quarter net profit. However, the company reported a 20% increase in deliveries, indicating the impact of recent price cuts on its overall revenue.

The data company PagerDuty experienced a 4.8% increase after reporting strong earnings and announcing a share repurchase program. Their fourth-quarter results showed adjusted earnings of 22 cents on $121.4 million in revenue, outperforming analyst expectations of 16 cents per share on $120 million in revenue.

Additionally, Semtech’s shares rose by 12.1% following better-than-anticipated earnings for its fourth quarter and a strong guidance for the current quarter. The company reported earnings of 40 cents per share, excluding items, against expectations of 32 cents, with revenue of $251 million exceeding estimates of $249 million.

Despite these gains in individual stocks, broader market concerns persist. The S&P 500 Index has seen a rapid 10% decline from its record high of $52.06 trillion on February 19, plummeting to $46.78 trillion by Thursday, resulting in a total loss of approximately $5.28 trillion in just three weeks.

The decline has been exacerbated by ongoing uncertainty surrounding President Donald Trump’s trade policies, which have raised concerns among investors. Barclays strategist Emmanuel Cau noted this uncertainty in a client note, stating, “While many see recession talk as premature, concerns about erratic policy from the new administration abound, with the ‘uncertainty tax’ hitting growth expectations.”

Market sentiment has also been influenced by signs of slowing economic growth, evidenced by weak consumer sentiment surveys and muted outlooks from various sectors.

Furthermore, the unwinding of the growth trade related to artificial intelligence has contributed to market volatility, with AI-related stocks stripping away value. The S&P 500, now trading at 24.1 times its trailing 12-month earnings, remains above its long-term average, raising concerns about market valuation.