AppLovin Slides to 132nd in Market Volume as Adtech Turnaround Gains Momentum

On July 30, AppLovin (APP) traded at a 0.46% gain with a volume of $0.82 billion, a 31.73% drop from the prior day, ranking it 132nd in market volume. The stock has seen mixed performance this year following last year’s 700% surge.

AppLovin recently finalized the sale of its mobile app game business to Tripledot Studios, a $400 million cash deal plus a 20% equity stake in the latter, valued at $400 million. This divestiture aims to streamline operations, focusing on its high-growth adtech segment, which reported $1.16 billion in Q1 advertising revenue, up 71% year-over-year. The company is set to release Q2 earnings on August 6, with revenue guidance of $1.195-$1.215 billion, reflecting cautious sequential growth expectations.

The adtech division, leveraging Axon AI technology for ad optimization, remains the core growth driver. The Tripledot transaction strengthens AppLovin’s balance sheet and offers potential upside if Tripledot’s valuation rises. Analysts highlight that exceeding Q2 guidance could trigger a rally, as the stock has retreated over a third from its peak this year.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% return. This highlights the effectiveness of volume-based selection in capturing short-term market momentum.