Shares of Megaport Limited (ASX:MP1) surged 5.01% in intraday trading, outperforming the broader market as investors reacted positively to the company's recent financial results and upgraded guidance. The network as a service operator has been defying the tech sector selloff, showcasing its resilience in a challenging economic environment.

Megaport's impressive performance can be attributed to several factors. The company recently reported a strong half-year result, with an 18% increase in annualised recurring revenue (ARR) to $226.6 million and a 12% lift in gross profit to $74.7 million. This solid financial performance has boosted investor confidence in the company's growth trajectory.

Adding to the positive sentiment, Megaport has increased its guidance for FY 2025, signaling management's optimism about future prospects. This upward revision in outlook has likely attracted more investors to the stock. Additionally, market analysts suggest that the stock's surge might be partly due to a short squeeze, as short sellers rushed to cover their positions following the better-than-expected results. The company's ability to thrive amidst broader market challenges has positioned it as a standout performer in the ASX 200, with its shares rallying 31% higher during the first quarter of 2025.