Applovin Stock Plummets 8.21% Despite Record $30.65 Billion Trading Volume Ranking 17th

On June 9, 2025, Applovin (APP) experienced a significant drop in its stock price, falling by 8.21%. Despite this decline, the company's trading volume reached $30.65 billion, making it the 17th highest in the market for the day.

Morgan Stanley analysts have expressed a bullish outlook on Applovin, raising their price target for the company to $460 from $420 per share. This adjustment comes as Morgan Stanley anticipates that the sale of Applovin's first-party mobile games business, known as the Apps Segment, to Tripledot Studios will enhance shareholder value. The sale, expected to close in the second quarter of 2025, is valued at $400 million in cash and $400 million in Tripledot stock. Although this segment contributed 32% of revenue and 10% of EBITDA in 2024, Morgan Stanley views the divestiture as a strategic move that will reallocate profits from the low-multiple games business to the high-multiple ad business, thereby increasing the total value of the company. The firm has also adjusted its 2026 and 2027 EBITDA forecasts for Applovin down by 1% for each year, but has applied a higher EBITDA multiple of 29x, up from 26x previously, reflecting a move away from a Sum-of-the-Parts valuation.