AppLovin's $2.4B Volume Ranks 29th as Strategic Divestiture Fuels 14.36% Rally

On August 1, 2025, AppLovin (APP) closed at $379.17, down 2.95% with a trading volume of $2.40 billion, ranking 29th in market activity. The decline followed the company’s $400 million sale of its mobile gaming subsidiaries to Tripledot Group, finalized on June 30. The divestiture, highlighted as a strategic move to streamline operations, aligns with billionaire Stanley Druckenmiller’s endorsement of AppLovin as a top AI stock. Despite the near-term dip, the stock has gained 14.36% over the past month, outperforming broader market indices.

Analysts anticipate strong earnings momentum ahead of AppLovin’s August 6 report. The company is projected to post Q2 2025 earnings of $1.99 per share, a 123.6% increase year-over-year, alongside revenue of $1.21 billion. Full-year estimates suggest earnings of $8.39 and revenue of $5.51 billion, reflecting 85.21% and 17.02% growth, respectively. However, its forward P/E ratio of 46.54 remains elevated compared to the industry average of 21.61, indicating a premium valuation despite positive earnings revisions.

The Zacks Rank model, which tracks estimate changes, currently rates AppLovin a #3 (Hold). While the stock’s PEG ratio of 2.33 signals mixed value relative to growth expectations, its inclusion in potential S&P 500 additions underscores market confidence. The upcoming earnings release will be critical for validating recent optimism, as liquidity-driven strategies have historically outperformed in volatile markets.

A backtest of a strategy purchasing the top 500 stocks by daily volume and holding for one day generated a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% gain. This highlights the short-term impact of liquidity concentration in high-momentum environments.