AppLovin Stock Price Levels to Watch After Post-Earnings 46% Surge

Core Insights - AppLovin shares surged after the company reported better-than-expected results and a positive outlook, driven by increased digital advertising spending on its AI-powered platform [2][4] - The stock experienced a breakaway gap with the highest trading volume since August, indicating strong buying interest from larger market participants [5] - Technical analysis suggests a potential price target of around $360, approximately 45% above the recent closing price, with a bullish trend expected to continue until late March next year [7][8] Financial Performance - AppLovin reported a 66% increase in software revenue for the quarter, attributed to enhancements in its AXON platform that allowed advertising partners to scale their spending [3] Stock Performance - On Thursday, AppLovin shares rose 46% to $246.53, marking a more than six-fold increase since the beginning of the year, making it the best-performing technology stock in 2024 with a market capitalization of over $5 billion [4] Technical Analysis - The relative strength index (RSI) indicates strong bullish momentum but also suggests overbought conditions, which may lead to short-term profit-taking [6] - Key support levels to monitor include $228 and $172, with the former being crucial to maintain the current bullish trend [9][10]