• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

AppLovin stock price forecast: buy the dip or sell the rip?

by April 15, 2025
by April 15, 2025

AppLovin stock price has imploded in the past few months as concerns about its valuation continued. It also plunged after a short-seller report warned about its business practices and hinted that it may keep falling soon. It has crashed by over 55% from its highest point level this year, bringing its market cap to over $84 billion.

Official statements show that AppLovin is growing

AppLovin is a technology company that provides solutions to businesses in the US and other countries. Its AppDiscovery tool helps to match applications with the right users, increasing the number of downloads.

Further, the company has the MAX solution, which helps developers to maximize their advertising revenue by running real-time auctions for ad space. 

Most importantly, the company has moved more into the advertising business, where it connects advertisers to over 1.5 billion users across mobile apps and connected televisions. 

AppLovin’s business has grown rapidly in the past few years as more companies have moved into its ecosystem. Its annual revenue rose from $1.4 billion in 2020 to over $4.7 billion last year, representing a 213% annual growth rate. 

AppLovin’s management believes that the company has more room to grow in the coming years as more companies move into its platform. It also expects to accelerate the growth by making a long-shot bid for TikTok, the giant Chinese social media company. 

Analysts expect that AppLovin’s business will continue doing well this year. The average estimate is that its quarterly revenue will grow by 30% last quarter and 29.5% in the next quarter. 

The annual revenue is expected to come in at $5.67 billion, a 20% annual increase, followed by $6.9 billion next year.  Still, Muddy Waters Research warned that some of the official figures were a bit exaggerated. 

APP stock valuation concerns

Wall Street analysts are upbeat about the AppLovin stock price, which they believe that it has more upside going forward. The average estimate is that its stock will climb to $444, up sharply from the current $236. 

Some of the most bullish are from companies like Goldman Sachs, Piper Sandler, Morgan Stanley, and Wells Fargo. The main case for the company is that it has more room to grow because of its advanced artificial intelligence features. 

However, valuation concerns remain. The most recent data shows that the company has a forward price-to-earnings ratio of 42.3, much higher than other popular technology companies like Microsoft and Adobe. 

AppLovin has a hefty price-to-sales ratio of 17.4 and an enterprise value to EBITDA multiple of 35. Therefore, the company needs to continue growing its business significantly to justify this valuation. 

AppLovin stock price technical analysis

APP stock chart | Source: TradingView

The daily chart shows that the APP share price has crashed sharply in the past few months. This decline is in line with our previous estimate, which you can see here, here, and here. Our argument in these articles was that the stock surged so fast, exposing it to a sharp pullback.

The daily chart shows that the AppLovin stock price has been in a strong downtrend in the past few months as it plunged from a high of $524 in March to the current $235. It has dropped below the 50-day and 100-day Exponential Moving Average (EMA), a sign that bears are gaining control.

Further declines from the current level will boost the odds of the stock forming a death cross, a risky pattern that happens when the two moving averages cross each other. 

Therefore, the path of the least resistance for the AppLovin share price is bearish, with the next point to watch being at $200, the lowest swing on April 7. A break below that level will signal more downside to $175.

The post AppLovin stock price forecast: buy the dip or sell the rip? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
European stocks gain on auto tariff hopes, but LVMH slump clouds outlook
next post
Adobe invests in AI video firm Synthesia after it hits $100 million in recurring revenue

Related Posts

CoreWeave stock is firing on all cylinders: get...

June 4, 2025

DocuSign stock price forecast ahead of earnings: buy...

June 4, 2025

Crude oil faces extended downside risks amid ample...

June 4, 2025

China’s export curbs on critical minerals raise alarms...

June 4, 2025

Goldman Sach’s GPIQ ETF is beating JPMorgan’s JEPQ:...

June 4, 2025

China plans major Airbus deal before EU leaders’...

June 4, 2025

European markets open: Stoxx 600 gains 0.3%; focus...

June 4, 2025

Rolls-Royce share price nears 1,000p as a new...

June 4, 2025

Tesla May sales soar 675% in Australia even...

June 4, 2025

Why did Stephen Curry pick Under Armour over...

June 3, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The Economic Tradeoffs of Property Tax Reform

    June 4, 2025
  • What Moody’s US Credit Downgrade Means for You

    June 4, 2025
  • The Rent IS Too High: Blame Zoning and Supply Caps, Not Rental Apps

    June 4, 2025
  • GCT Semiconductor and Iridium Sign MOU to Collaborate on Integrating Iridium NTN Direct℠ Service into GCT Chipset

    June 4, 2025
  • What Moody’s US Credit Downgrade Means for You

    June 4, 2025
  • The Rent IS Too High: Blame Zoning and Supply Caps, Not Rental Apps

    June 4, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,345)
  • Editor's Pick (142)
  • Investing (165)
  • Stock (864)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Analyst urges investors to act as Lyft...

May 10, 2025

Wall Street rallies on US-UK trade breakthrough...

May 9, 2025

Asia markets open: markets cheer as US,...

May 7, 2025