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Why AppLovin Rallied Today
ApplovinApplovin(US:APP) Yahoo Financeยท2025-09-08 21:29

Group 1 - AppLovin shares experienced a significant rally, increasing by 11.6% on a recent trading day, with a year-to-date gain of 68.5%, leading to a market capitalization of $184 billion [1][8] - The inclusion of AppLovin in the S&P 500 index is seen as a validation of the company's credibility and a positive development amidst previous short-seller attacks [2][3] - The trend towards passive index investing is increasing, with indexing rising from 32% to 58% of invested assets through 2024, which will likely create additional buying pressure for S&P 500 stocks [4] Group 2 - AppLovin is currently trading at a high valuation of 51 times this year's earnings estimates, reflecting its status as a rapidly growing AI-powered digital advertising company [7] - The company reported a 77% increase in revenue and a 156% rise in net income from continuing operations in the last quarter, indicating strong financial performance [7] - If the short-seller allegations are proven unfounded, AppLovin is positioned to become a significant player in the digital advertising space, alongside other major AI beneficiaries [9]