Why AppLovin Stock Could Blow Past Its Record High

Core Insights - AppLovin Corp (NASDAQ:APP) stock has experienced a decline of 3.6%, trading at $699.65, amidst challenges in the tech sector ahead of an interest rate decision, despite a strong performance over the past week and a 158.2% increase over the last nine months [1] - The stock is nearing its record high of $745.61 from September 29, with bullish signals indicating potential for a new peak [1] Performance Metrics - The recent surge in AppLovin stock is associated with low implied volatility, with a Schaeffer's Volatility Index (SVI) of 57%, ranking in the 12th percentile of its annual range; historically, similar conditions have led to a 71% chance of higher stock prices one month later, averaging a 12.6% gain [2] - If the stock follows this trend, it could reach a new record high of $787.80 [2] Short Interest Dynamics - Short interest has decreased by 9.3% in the latest reporting period, with 14.87 million shares sold short, representing 6% of the stock's available float, indicating potential buying power [4] - The current short interest suggests that a continued exit of short positions could further propel the stock price upward [4] Options Market Sentiment - Short-term options traders are exhibiting unusual bearishness, as indicated by the Schaeffer's put/call open interest ratio (SOIR) in the 88th percentile of its annual range; an unwinding of this pessimism could provide additional support for the stock [5]