APP Stock Falls -8.1% In A 6-day Losing Spree On Technical Breakdown
AppLovin (APP) stock hit day 6-day losing streak, with cumulative losses over this period amounting to a -8.1%. The company market cap has crashed by about $20 Bil over the last 6 days, and currently stands at $228 Bil.
The stock has YTD (year-to-date) return of 108.1% compared to 16.4% for S&P 500. This calls for re-evaluation of stock’s valuation, and find out whether this is an opportunity, or a trap.
What Triggered The Slide?
[1] Technical Breakdown and Year-End Profit-Taking
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- Shares slipped below the psychologically critical $700 threshold on December 29, 2025
- Move attributed to a combination of year-end profit-taking and cooling appetite for high-valuation tech stocks
- Impact: Breach of Key $700 Support Level, Increased Selling Pressure Amid Broader Tech Pullback
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in APP stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile (For details, see Buy or Sell APP).
But here is the real interesting point.
You are reading about this -8.1% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for APP stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | APP | S&P 500 |
|---|---|---|
| 1D | -2.9% | -0.7% |
| 6D (Current Streak) | -8.1% | -0.5% |
| 1M (21D) | 8.1% | 0.5% |
| 3M (63D) | -4.3% | 2.0% |
| YTD 2025 | 108.1% | 16.4% |
| 2024 | 712.6% | 23.3% |
| 2023 | 278.4% | 24.2% |
| 2022 | -88.8% | -19.4% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: APP Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 6 S&P constituents with 3 days or more of consecutive gains and 204 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 3 | 110 |
| 4D | 1 | 81 |
| 5D | 2 | 4 |
| 6D | 0 | 9 |
| 7D or more | 0 | 0 |
| Total >=3 D | 6 | 204 |
Key Financials for AppLovin (APP)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $3.3 Bil | $4.7 Bil |
| Operating Income | $648.2 Mil | $1.9 Bil |
| Net Income | $356.7 Mil | $1.6 Bil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $1.3 Bil | $1.4 Bil |
| Operating Income | $957.7 Mil | $1.1 Bil |
| Net Income | $819.5 Mil | $835.5 Mil |
The losing streak APP stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.