"After AppLovin Corp.'s ( NASDAQ: APP) share price tumbled more than 35% early last year due to a pending class action lawsuit and to short seller reports, the software company's better-than-expected quarterly reports helped the stock recover. Shares hit a new high of $745.61 a piece in September and took another run at that high in late December. However, they have retreated over 45% year to date, including an almost 10% drop in the past week."
"Since the company went public in 2021, its share price is still over 532% higher. This has clearly been a top growth stock that investors have benefited from owning in recent years. AppLovin has been among the top tech stocks seeing a lot of love from the market, but is that still true? These days, the company focuses on providing software solutions that enhance the marketing and monetization of online advertisers."
"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 share price plunged more than 35% early last year after a pending class action lawsuit and short-seller reports, then recovered following better-than-expected quarterly results. The stock reached $745.61 in September and approached that level again in late December before retreating over 45% year-to-date, including almost a 10% drop in the past week. AppLovin has underperformed the S&P 500 and Nasdaq over the past year, yet remains over 532% above its 2021 IPO price. The company provides software to improve marketing and monetization for online advertisers and benefits from secular adtech growth. AppLovin previously experienced a more than 90% drawdown from its 2021 post-pandemic high. Analysts have expressed caution, with some issuing warnings and ratings like Neutral.
Read at 24/7 Wall St.
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