AppLovin Corp (NASDAQ:APP) shares are trading marginally higher Thursday. Reports surfaced that the mobile advertising powerhouse is laying the groundwork to build its own social networking platform. Here’s what you should know.
AppLovin Targets Social Platform
According to Bloomberg, AppLovin is now preparing to develop a social platform from scratch, a move that comes after its unsuccessful attempt last year to acquire TikTok's operations outside China.
The plan was reportedly discussed by a senior executive during a Chinese‑language podcast and echoed in a job listing seeking someone to "architect the digital backbone of our next‑generation social platform."
Strategic Implications
If successful, the shift could give the Palo Alto‑based company far more control over user data and the broader mobile advertising ecosystem. It would also place AppLovin in direct competition with major social platforms such as Meta, TikTok and Snap.
A job posting for a Singapore‑based backend engineer outlines the ambition: building a system capable of media delivery, real‑time social interactions and content discovery.
AppLovin previously expressed interest in acquiring TikTok's non‑China business after the U.S. threatened to ban the app unless ByteDance sold it to an American entity. Several companies submitted bids before a consortium led by Oracle, Silver Lake and Andreessen Horowitz ultimately acquired the assets.
The Technical Side Of APP
Applovin is currently trading below its key moving averages, which suggests a bearish sentiment in the market. With the 20-day SMA at $464.25 and the stock trading 13.3% below this level, traders should be cautious as this indicates a struggle to regain upward momentum.
The RSI is currently at 38.59, which is considered neutral but leans towards oversold territory. This level suggests that while the stock isn’t in a strong downward trend, there may be limited buying pressure. MACD is below its signal line, indicating bearish pressure on Applovin’s stock. The stock may continue to face downward momentum unless there's a significant change in buying interest.
Key support is at $360.00, while resistance is set at $473.50. If the stock approaches the support level, traders should be alert for a potential bounce or a breakdown, while a move towards resistance could indicate a possible trend reversal.
Over the past 12 months, Applovin’s stock has declined by 18.74%. This longer-term trend highlights the challenges the stock has faced, reinforcing the need for traders to remain vigilant about potential support and resistance levels.
APP Price Action: AppLovin shares were up 0.17% at $405.06 at the time of publication on Thursday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock
