AppLovin Stock Falls As S&P 500 Snub Dampens Sentiment

Applovin Corp APP shares fell 3.66% to $402.59 Monday morning after being excluded from the latest S&P 500 quarterly rebalance, disappointing investors who had anticipated its inclusion.

What To Know: This setback comes amid broader industry developments. JPMorgan analyst Cory Carpenter recently raised AppLovin's price forecast from $355 to $400, citing strong first-quarter results, regulatory tailwinds from the App Store ruling and optimism around its Axon 2 ad tech.

However, Needham analyst Bernie McTernan reiterated a Hold rating, pointing to modest Axon adoption growth and rising valuation concerns. McTernan noted the tool is yet to fully launch in self-service mode despite reaching 2,000 users and landing new clients like Reebok.

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McTernan noted that AppLovin's valuation is now among the highest in his coverage group, driven by rising investor expectations for the company's ability to expand monetization through new advertising verticals.

AppLovin meanwhile projects second-quarter revenue of $1.21 billion and EPS of $1.86, as analysts remain divided on its valuation and growth trajectory.

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How To Buy APP Stock

By now you're likely curious about how to participate in the market for AppLovin – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, APP has a 52-week high of $525.04 and a 52-week low of $60.67.