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AppLovin Stock Notches Record High After Post-IPO Swoon

AppLovin (APP), a mobile game developer and provider of tools for monetizing apps, saw its shares surge to a record high on Tuesday. AppLovin stock attempted to break out of an IPO base in morning trading.




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The Palo Alto, Calif.-based company has seen its stock make a comeback after a disappointing initial public offering. As of Monday’s close, AppLovin stock had climbed for seven straight sessions.

AppLovin went public on April 15 with its IPO priced at $80 a share. But AppLovin stock traded only as high as 71.51 that day. It ended its first day of trading at 65.20.

AppLovin stock then went on a monthlong swoon, bottoming out at 49.41 on May 13.

AppLovin Stock Hits Buy Point

The software firm posted its first quarterly results as a publicly traded company on May 12. AppLovin delivered mixed first-quarter results, with revenue above views but operating income below estimates.

AppLovin lost 5 cents a share on sales of $603.9 million in the March quarter. In the year-earlier period, it earned 1 cent a share on sales of $260.2 million.

William Blair analyst Ralph Schackart reiterated his outperform rating on AppLovin stock after the company’s earnings report.

“We believe AppLovin is well-positioned with a differentiated software stack for mobile app ad targeting, attribution, and monetization with a deep bench of owned and partnered gaming studios within its portfolio to drive strong revenue growth and compete within the fast-growing mobile gaming ecosystem,” he said in a note to clients May 13.

In morning trading on the stock market today, AppLovin stock was down 1.2%, near 69.50. Earlier in the session, it hit a buy point of 71.61 out of an IPO base. It rose as high as 72.53 before retreating.

AppLovin owns a dozen mobile game studios, including Lion Studios and Machine Zone. The company also offers a platform for developers to market, monetize, analyze and publish their apps.

AppLovin stock is on IBD’s Leaderboard stock watchlist.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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