The stock market managed to regain some of its lost ground on Thursday morning, but the Nasdaq Composite (NASDAQINDEX:^IXIC) wasn't able to deliver the confident bounce that many investors would've preferred to see. As of noon EDT, the Nasdaq was up just half a percent after having risen more than 1.5% earlier in the day. Investors in growth stocks appear reluctant to conclude that the volatility that the Nasdaq has endured recently has fully run its course, and that might be why gains faded toward midday.

Part of the problem is that some smaller Nasdaq stocks continue to fall regardless of whether their financial reports are good or bad. Both Bumble (NASDAQ:BMBL) and Poshmark (NASDAQ:POSH) joined the list of companies that have issued their latest results, and both stocks were sharply lower even though each had some fundamental successes in their respective businesses.

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Bumble keeps buzzing

Shares of Bumble dropped another 13%, hitting a new all-time low since coming public in February. The online dating specialist seemed to give investors a strong picture of its business, but shareholders didn't have a good first impression.

Bumble has made substantial progress over the past year. Revenue climbed 43% from year-ago levels when you combine its predecessor entity's sales into the mix. Bumble had massive net income, but the strong-looking results stemmed from a favorable income tax benefit. Pre-tax losses widened 27% year over year.

Bumble's operating metrics improved, with total paying users rising 30% to 2.8 million and a 13% rise in revenue per paying user to almost $20. However, investors seemed to focus on projections for full-year 2021 revenue of between $724 million and $734 million. That would imply a growth rate of just 25%, which is significantly slower than what many have hoped to see.

The online dating industry has been highly lucrative, and that generated high expectations for Bumble. The company will have to work harder to meet those expectations in order for the share price to bounce back and generate new buzz for Bumble.

Can Poshmark get back in style?

Elsewhere, shares of Poshmark lost 17%. The secondhand-style-based social marketplace continued to see its business gain momentum, but investors once again didn't have their high expectations met.

Poshmark's numbers looked good. Gross merchandise value jumped 43% year over year to $441 million, leading to a 42% rise in revenue. Poshmark managed to post a modest adjusted operating profit, although it lost $0.33 per share due largely to various noncash expense items.

Among the latest initiatives from Poshmark was a new category for pet owners trying to shop for their pets. The company expanded into Australia as part of its ongoing effort to boost its international exposure, and new in-listing video and seller shipping discount features helped to heighten the value of the Poshmark platform for sellers.

Like Bumble, however, investors didn't seem satisfied with Poshmark's guidance. The company sees second-quarter revenue coming in flat to down slightly from first-quarter results. If that means customers might be losing their appetite for Poshmark's listings, it could spell further trouble for the already hard-hit stock.

Keep your eyes on the Nasdaq

In the long run, stocks perform in line with their underlying businesses. For the Nasdaq to recover, high expectations will need to get more realistic. As painful as this process is, it offers opportunities to those with confidence in companies with strong business models.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.