AppLovin Just Joined the S&P 500. Here's What History Suggests the Artificial Intelligence (AI) Stock Will Do Next.

Core Insights - AppLovin launched its Axon 2.0 software in early 2023, which incorporates artificial intelligence and has significantly advanced the company's business, leading to its inclusion in the S&P 500 [1][2] - As of September 5, AppLovin had a market capitalization exceeding $150 billion and a trailing-12-month net income of over $2.7 billion, meeting the criteria for S&P 500 inclusion [2] - The Axon software unit has higher profit margins compared to the company's previous business units, contributing to substantial profit growth, with a year-over-year quarterly revenue growth rate close to 30% and a 68% increase in revenue in Q3 2025 [3] S&P 500 Inclusion Impact - AppLovin has been part of the S&P 500 for about a month, and historically, stocks tend to experience a short-term boost upon inclusion, typically lasting around a month [4][5] - Long-term performance following S&P 500 inclusion shows no clear pattern, with examples like Bio-Rad Laboratories and Tyler Technologies illustrating that inclusion does not guarantee positive future returns [6][7] - AppLovin is diversifying beyond its gaming niche, which is a significant development for investors to monitor [8]