What's Going On With AppLovin Stock Tuesday?

Shares of AppLovin Corp (NASDAQ:APP) are trading lower Tuesday afternoon, cooling off from recent highs. The decline is not tied to company-specific news but rather a broader market pause in the high-growth technology sector. Here’s what investors need to know.

APP stock is showing notable weakness. Find out why here.

What To Know: Tech sentiment turned fragile on Tuesday amid renewed concerns over lofty AI valuations.This wider downdraft also pulled down shares of AI-related companies like Arm Holdings and Marvell Technology, indicating sector-wide profit-taking.

Also dragging the broader AI sector, Nvidia shares are trading lower Tuesday afternoon following reports that SoftBank Group offloaded its entire stake in the chipmaker. 

The pullback stands in contrast to AppLovin’s recent bullish momentum, with the stock up some 73% over the trailing six months. Last week, the company reported third-quarter earnings that beat analyst estimates, posting revenue of $1.41 billion and earnings of $2.45 per share.

AppLovin also provided strong fourth-quarter revenue guidance of $1.57 billion to $1.60 billion and announced its board had increased its share buyback authorization by $3.2 billion.

Following the report, analysts, including those at Wells Fargo, Goldman Sachs and UBS, reiterated Buy or equivalent ratings, citing the company’s strong performance and market momentum.

Benzinga Edge Rankings: Despite Tuesday’s pullback, AppLovin’s underlying strength is highlighted by its Benzinga Edge Momentum score of 94.33.

APP Price Action: AppLovin shares were down 8.55% at $595.64 at the time of publication on Tuesday, according to Benzinga Pro data.

Read Also: 16 Stocks To Buy If You Want To Escape The AI Hype

How To Buy APP Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in AppLovin’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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