- AppLovin (APP) set new all-time highs on Sept. 12.
- Shares are up an impressive 415% over the past year.
- APP maintains a 100% “Buy” technical opinion from Barchart and strong Trend Seeker signals.
- While investor sentiment is positive, APP is volatile and speculative, requiring strict risk management and stop-loss strategies for potential investors.
Today’s Featured Stock
Valued at $197 billion, AppLovin (APP) provides a technology platform that enables developers to market, monetize, analyze, and publish their apps.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. APP checks those boxes. Since the Trend Seeker signaled a buy on Aug. 4, the stock gained 47.34%.
APP Price vs. Daily Moving Averages:
Barchart Technical Indicators for AppLovin
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
AppLovin hit a new all-time high of $587.88 in intraday trading on Sept. 12.
- AppLovin has a Weighted Alpha of +193.52.
- APP has an 100% “Buy” opinion from Barchart.
- The stock gained 415.68% over the past year.
- APP has its Trend Seeker “Buy” signal intact.
- AppLovin is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 13 new highs and gained 32.34% in the last month.
- Relative Strength Index (RSI) is at 80.82%.
- There’s a technical support level around $573.45.
Don’t Forget the Fundamentals
- $197 billion market capitalization.
- 82.68x trailing price-earnings ratio.
- Revenue is expected to grow 17.76% this year and another 27.77% next year.
- Earnings are projected to increase 87.98% this year and an additional 25.70% next year.
Analyst and Investor Sentiment on AppLovin
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are high on AppLovin.
- The Wall Street analysts tracked by Barchart have issued 19 “Strong Buy,” 3 “Hold,” and 1 “Sell” opinion on the stock.
- Their price targets are between $385-$650.
- Value Line gives the stock its “Highest” rating with a price target of $659 and comments: “AppLovin’s long-term prospects are promising, as demand for the company’s software and artificial intelligence-powered solutions should grow. These shares offer above-average upside potential out to late decade.”
- CFRA’s MarketScope Advisor rates it a “Buy” with a price target of $634.
- Morningstar thinks the stock is 61% overvalued based on its high P/E.
- 102 investors following the stock on Motley Fool think the stock will beat the market while 12 think it won’t.
- 44,130 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line on AppLovin
AppLovin has a lot going for it and great investor sentiment.
I caution that APP is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
