Software stock AppLovin Corp (NASDAQ:APP) was last seen up 5.8% to trade at $554.59, after an upgrade from Needham to "buy" from "hold." The firm also set a price target of $700, citing e-commerce revenue growth and potential upside following the stock's recent pullback.
Today's gains will add to Friday's bounce off the 180-day moving average, which saw the stock snap a six-day losing streak. However, since the start of the year the equity has shed roughly 18%.
For those betting on a further rebound, short interest has been building, and now represents 6.3% of the stock's available float, or nearly four days' worth of pent-up buying power. Plus, APP's 14-day Relative Strength Index (RSI) of 32.9 sits on the cusp of "oversold" territory.
Options bulls are targeting AppLovin stock straight out of the gate, with calls being picked up at nearly double the stock's average pace. The weekly 1/30 600-strike call is the most popular, followed by the 580-strike call in the same series, with new positions being opened at both.
