5 Green Days In A Row: AppLovin Stock Is Up 71%
Shares of AppLovin (APP) have closed higher in each of the last 5 sessions, a cumulative gain of 71.2%. That added about $54.3 billion to the company’s market value, which now stands at about $130.5 billion. The stock closed at $391.22 on Friday, November 6, 46.7% below its 52-week high of $733.60 and 71.2% above its low of $228.50.
How The Streak Stacks Up Against The S&P 500
Returns for APP and the S&P 500 over the streak and the periods around it, all ending Friday, November 6 and including dividends:
| Return Period | APP | S&P 500 |
|---|---|---|
| 1 Day | 9.9% | 0.3% |
| 5 Days (Current Streak) | 71.2% | -2.7% |
| 1 Month (21 Trading Days) | 39.7% | -4.9% |
| 3 Months (63 Trading Days) | 15.4% | -4.6% |
| Year To Date | -41.9% | 8.8% |
| 1 Year (252 Trading Days) | -36.6% | 9.8% |
A Stock-Specific Run, Or A Market Move?
Over the same 5 trading days, the S&P 500 returned -2.7% including dividends, so the run is mostly AppLovin’s own story rather than the market’s. 5 other S&P 500 stocks are currently on winning streaks of 5 days or longer. Over the past three months the stock is up 15.4%, a window that includes the streak; over the other 58 sessions of that window it was down 32.6%.
Do The Fundamentals Support The Run?
On the fundamentals, revenue grew 57.8% over the last twelve months, against a median of 9.3% for S&P 500 Communication Services stocks; its operating margin is 77.8%, versus a median of 20.9%; and the stock trades at 26.0 times trailing earnings against a median of 17.8. On these numbers the run has substance behind it: revenue growth above the median and margins above the median.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
For anyone who would rather back the theme than one company, a communication services ETF like XLC holds the whole group, not just this stock. It is still a concentrated bet on one theme, which is the gap the portfolio below is built to close.
Momentum Is A Tailwind, Not A Plan
Riding a stock that rises every day feels effortless, and that is precisely the danger: the same momentum that built this run can reverse without notice, and one name’s reversal should never be able to reset your whole year.
That is what the Trefis High Quality (HQ) Portfolio is for: about 30 quality businesses screened for the fundamentals that survive momentum’s mood swings, held with rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Watch the runs; own the resilience.