Applovin Corporation - Class A Common Stock (APP)

Culper Research issued a short report on AppLovin on Thursday, alleging the advertising technology company poses national security risks because of its potential ties to China.

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

AppLovin's S&P 500 exclusion just hit the stock hard. However, analysts at Morgan Stanley remain bullish, announcing a price target increase on the same day.

Wall Street ends mixed as investors await US-China trade news and digest moves from Apple, Qualcomm, and Warner Bros. Discovery.

Shares of mobile app advertising platform AppLovin (NASDAQ: APP) fell 5.6% in the morning session after the company wasn't added to the S&P 500 Index following the quarterly rebalancing. 

Applovin shares fell after the company was excluded from the S&P 500. The drop comes as analysts are divided over the company's high valuation and growth.

Mobile app advertising platform AppLovin (NASDAQ: APP) exceeded the market’s revenue expectations in Q1 CY2025, but sales rose 40.3% year on year to $1.48 billion. Its non-GAAP EPS of $2.38 per share was 21.8% above analysts’ consensus estimates.

Here's what to make of AppLovin's meteoric rise and what might lie ahead for the stock.

Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.

Apps such as Bumble and Playstudios that previously paid fees to Apple should expect an annual margin uplift.

A significant trading signal occurred for AppLovin stock as it demonstrated a power inflow at $401.10, after which APP rose up to 4.1%.

JP Morgan analyst names Take-Two Interactive and Xometry as top picks in internet SMID & video games sectors. Potential for relief for Match Group & Bumble from App Store ruling. Specific opportunities & dislocations highlighted, including Roku & Xometry.

Top performing large-cap stocks last week: X, U, VEEV, BWXT, ULTA, RDDT, HOLX, INTU, HEI, and APP. Do you have them in your portfolio?

Needham analyst reiterates Hold rating on AppLovin. 3rd Ecommerce Tracker shows 3% growth in websites using Axon, with 7 churns and 18 adds.

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. 

The Nasdaq 100 (^NDX) is packed with high-growth companies, and while the market is competitive, some are pulling ahead. A handful of standout businesses are continuing to scale, delivering strong financials and market leadership.

APPLOVIN CORP (NASDAQ:APP) is a high-growth software stock with strong profitability and reasonable valuation, making it a candidate for growth investors.