AppLovin Stock Plummets Below Key Support: Is It Time to Buy?

AppLovin (APP) has faced significant challenges recently, with its stock price dropping sharply. In the final week of 2025, and carrying into the new year, the company saw an 8% decline. This downturn has pushed its shares below the critical 50-day moving average, a key indicator of potential sustained bearish momentum.

Overall, AppLovin’s stock has decreased over 15% since hitting a peak in December 2025. Despite these challenges in market performance, the fundamentals of AppLovin’s business appear strong, indicating a disparity between stock performance and operational results.

Strong Business Fundamentals

In the most recent quarter, AppLovin reported a 17% year-over-year growth in revenue, reaching $1.41 billion. This performance was bolstered by impressive earnings before interest, taxes, depreciation, and amortization (EBITDA), showcasing the strength of its AI-driven advertising platform.

The company currently supports over 200 free-to-play games, highlighting its significant role in the mobile technology sector. Notably, even with recent stock price fluctuations, APP shares remain above the longer-term 100-day moving average, suggesting an overall positive trend.

Competitive Advantage in Mobile Advertising

AppLovin’s strategic position in the mobile advertising landscape is enhanced by its AI-driven tools. These tools assist developers in marketing, monetizing, and expanding their applications effectively. The advanced targeting capabilities and proprietary data analytics offer a considerable competitive edge in the industry.

Future Outlook for AppLovin Stock

• Derivatives data indicates potential upside for AppLovin shares.
• Options traders expect a 25% movement by April 17, potentially valuing the stock around $771.
• Wall Street analysts have a positive outlook, rating APP shares as a “Strong Buy.”
• The average target price stands at approximately $723, suggesting a possible upside of over 15% from current levels.

In summary, while AppLovin’s stock has recently faced setbacks, its underlying business fundamentals and strategic advantages in the competitive landscape of mobile advertising suggest that it could be an opportune time for investors to consider purchasing shares.