"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 quarterly reports this year have given the stock a boost. The stock hit a new high of $745.61 in September. AppLovin stock may be taking another run at that high and is now 112.0% higher than a year ago, outperforming the S&P 500 and the Nasdaq"
"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."
AppLovin experienced volatile price swings in 2024, falling over 35% on legal and short-seller pressures before rebounding on stronger-than-expected quarterly results to reach new highs. The stock is up 112% year-over-year and over 1,136% since the 2021 IPO. The company offers software that enhances marketing and monetization for online advertisers and benefits from secular growth trends attracting investor demand. Analysts have expressed caution and the company previously suffered a greater-than-90% drawdown from its 2021 post-pandemic peak. Future performance will hinge on catalysts, fundamentals, and outcomes of legal and regulatory risks.
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