Applovin Corp (NASDAQ:APP) shares are tumbling on Wednesday despite new coverage by Evercore ISI Group analyst Robert Coolbrith, handing the company an Outperform rating and a price target of $835. The stock ranks among the biggest losers today.
AppLovin stock is taking a hit today. Why is APP stock dropping?
"We believe that APP faces significant long-term growth runway from both its core mobile game user acquisition market opportunity and its emerging opportunity as a challenger for e-commerce advertising budgets," said Robert Coolbrith, as reported by Barron’s.
Even with the positive coverage, Applovin is down significantly during the regular trading session, with the move coming as the broader market is experiencing a downturn, with the Nasdaq down 1.48% and the Technology sector facing a decline of 1.5%. A broad tech-sector selloff overshadowed the bullish research note. The iShares U.S. Technology ETF (NYSE:IYW), where AppLovin is the 20th‑largest holding, fell 1.8%.
The overall market sentiment is seen to be bearish today. The S&P 500 is down 0.80%, indicating a broader sell-off that is affecting many stocks, including those in the tech sector.
Applovin’s Technical Indicators Show Mixed Signals
AppLovin is trading about 9.6% under its 20‑day SMA and just 0.3% below its 100‑day SMA. That setup points to some short‑term softness, but the broader trend still leans bullish. The stock is up 89.66% over the past year and sits much closer to its 52‑week highs than its lows, which reflects strong longer‑term strength.
The RSI is sitting at 52.04, basically neutral, meaning the stock isn't stretched in either direction. However, the MACD has slipped below its signal line, showing some bearish momentum creeping in.
The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $727.00
- Key Support: $595.50
Applovin Scores High on Benzinga Edge Momentum
Below is the Benzinga Edge scorecard for Applovin, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 94.96/100) — Stock is outperforming the broader market.
- Value: Risk (Score: 5.33/100) — Trading at a steep premium relative to peers.
- Growth: Neutral (Score: 38.91/100) — Growth prospects are moderate.
The Verdict: Applovin Corporation Class A Common Stock’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (94.96) confirms the strong trend, the extremely low Value (5.33) score warns that the stock is priced for perfection — investors should ride the trend but use tight stop-losses.
APP Price Action: Applovin shares were down 7.47% at $618.71 at the time of publication on Wednesday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
