"After hitting an all-time high of $525.15 in February, AppLovin Corp.'s ( NASDAQ: APP) share price tumbled more than 35% due to a pending class action lawsuit and to short seller reports. However, the software company's better-than-expected first-quarter report gave the stock a boost and it has recovered. The stock just hit a new high of $632.88, after a 6.8% rally in the past week. Compared to a year ago, AppLovin stock is 404.6% higher, far outperforming the S&P 500 and the Nasdaq in that time."
"These days, the company focuses on providing software solutions that enhance the marketing and monetization of online advertisers. With AppLovin, there are certainly catalysts worth considering, and we'll get to those shortly. It continues to benefit from the strong secular growth trends that investors are seeking increased exposure to. As investors continue to pile into such stocks, retail investors appear eager to gain outsized exposure in anticipation of a continued boom."
"It is worth remembering that AppLovin experienced a drawdown of more than 90% from its post-pandemic high in 2021. So, is this stock headed for further declines, or is its momentum sustainable? Let's dive into some catalysts and price predictions around where this stock could go for the rest of 2025 through to the end of this decade."
AppLovin's shares fell over 35% after a pending class-action lawsuit and short-seller reports, then recovered following a better-than-expected first-quarter report and a recent rally to $632.88. The stock is 404.6% higher year-over-year and 971.4% above its 2021 IPO price, reflecting strong market enthusiasm. The company provides software that improves marketing and monetization for online advertisers and benefits from secular growth trends in ad tech. Retail investors have driven outsized exposure amid optimism about continued momentum. The stock previously experienced a more than 90% drawdown from its post-pandemic 2021 high. Analysts have issued warnings, creating conflicting signals about sustainability and future price direction through 2025 and beyond.
Read at 24/7 Wall St.
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