Applovin's $2.87B Volume Plunge Drags It to 27th in Market's Turbulent Ranks

On October 3, 2025, Applovin (APP) closed at a 0.13% decline, with a trading volume of $2.87 billion, marking a 30.97% drop from the previous day's activity. The stock ranked 27th in trading volume among equities listed that day, reflecting heightened short-term volatility amid mixed market sentiment.

Recent developments highlight a strategic shift in Applovin’s advertising revenue model, with the company announcing a phased reduction in reliance on third-party ad networks. The move aims to centralize ad distribution through its proprietary platform, potentially increasing long-term margins but requiring upfront operational adjustments. Analysts note the transition could temporarily disrupt revenue visibility for advertisers and developers dependent on external bidding systems.

Regulatory scrutiny in the EU over data privacy practices has also influenced investor perception. While no formal penalties have been issued, ongoing investigations into user tracking methodologies have prompted internal reviews, adding to near-term uncertainty. Market participants are closely monitoring the firm’s compliance timeline, which could impact Q4 guidance if delays arise.

To set up an accurate back-test, I need a few details about how you want the “top-500-by-volume” universe to be defined and traded. Guiding questions: 1. Universe • U.S. listed common stocks and ETFs? • All primary exchanges (NYSE, NASDAQ, AMEX) or a different set? 2. Volume metric • Share volume or dollar (price × shares) volume? 3. Rebalance / execution rule • Buy at each day’s close and sell next day’s close (1-day holding period)? • Equal-weight across the 500 names, no position limits? 4. Handling suspensions / corporate actions • OK to drop any stock that cannot be priced or traded on the exit day? 5. Risk controls (if any) • Stop-loss, take-profit, max drawdown, etc., or “none”? Once I have these points confirmed, I’ll pull the necessary data and run the back-test from 2022-01-03 (first trading day in 2022) through the latest available date.