Applovin Plummets to 24th in Trading Volume Ranking Despite Strong Earnings

On May 29, 2025, Applovin (APP) experienced a significant decline, with its trading volume reaching $19.89 billion, marking a 23.73% decrease from the previous day. This decline placed Applovin at the 24th position in terms of trading volume for the day. The stock price of Applovin dropped by 1.55%.

Applovin recently reported strong first-quarter earnings, showcasing substantial year-over-year growth. The company's advertising revenue surged by 71%, while its consolidated revenue grew by 40%, more than doubling its net income. This impressive performance has drawn the attention of growth investors, who are focusing on the company's projected earnings per share (EPS) growth of 85.3%.

Analysts have projected Applovin's earnings for 2026 to be around $11, which implies a forward price-to-earnings (P/E) ratio of 33x. Despite this, the company's earnings are expected to grow by 45% annually in the following year, indicating a strong growth trajectory. Additionally, billionaire Stanley Druckenmiller has shown bullish sentiment towards growth stocks like Applovin, further bolstering investor confidence.

However, Applovin's stock has faced challenges in recent months, with a 26% decline over the past three months. This decline is attributed to broader market trends and competition within the in-game mobile advertising space. Despite this, the company's technology platform, which enables developers to market, monetize, analyze, and publish their apps, remains a key strength. The platform is headquartered in Palo Alto, California, and continues to be a significant player in the tech industry.