With AppLovin Stock Sliding, Have You Assessed The Risk?
AppLovin (APP) stock is down 16.0% in 21 trading days. The recent slide reflects concerns over substantial insider selling and regulatory scrutiny of its ad tech, but sharp drops often raise a tougher question: is this weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where AppLovin stands today.
- Size: AppLovin is a $193 Bil company with $6.6 Bil in revenue currently trading at $568.76.
- Fundamentals: Last 12 month revenue growth of 86.4% and operating margin of 52.5%.
- Liquidity: Has Debt to Equity ratio of 0.02 and Cash to Assets ratio of 0.26
- Valuation: AppLovin stock is currently trading at P/E multiple of 68.0 and P/EBIT multiple of 58.8
- Has returned (median) -44.4% within a year following sharp dips since 2010. See APP Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside Very High valuation – making the stock Attractive but Volatile. For details, see Buy or Sell APP Stock
That brings us to the key consideration for investors worried about this fall: how resilient is APP stock if markets turn south? This is where our downturn resilience framework comes in. Suppose APP stock falls another 20-30% to $398 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- APP stock fell 91.9% from a high of $114.85 on 11 November 2021 to $9.30 on 27 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 September 2024
- Since then, the stock increased to a high of $733.60 on 22 December 2025 , and currently trades at $568.76
| APP | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -91.9% | -25.4% |
| Time to Full Recovery | 629 days | 464 days |
Feeling jittery about APP stock? Consider portfolio approach.
Smart Investing Begins With Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
The 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.