"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 recently hit a new high of $745.61. Compared to a year ago, AppLovin stock is 420.4% 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."
AppLovin's share price has swung dramatically, rising to an all-time intraday high, then tumbling over 35% amid a pending class action lawsuit and short-seller reports, before recovering after a stronger-than-expected first-quarter report to a recent high of $745.61. Year-over-year gains exceed 420%, and since its 2021 IPO the stock is up about 1,078.5%. The company provides software that enhances marketing and monetization for online advertisers and benefits from secular growth trends that attract retail investors. The stock previously experienced a more than 90% drawdown from its post-pandemic peak, leaving questions about the sustainability of current momentum and future catalysts.
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