Bears are Losing Control Over AppLovin (APP), Here's Why It's a 'Buy' Now

Core Viewpoint - AppLovin (APP) shares have recently declined by 7.6% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, with reduced selling pressure, and is a bullish signal for the stock [2][5]. - This pattern occurs during a downtrend when the stock opens lower, makes a new low, but then finds support and closes near its opening price, indicating a shift in control from bears to bulls [4][5]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for AppLovin, which supports the bullish case for the stock [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 6%, indicating that analysts expect better earnings than previously predicted [8]. - AppLovin currently holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].