AppLovin’s stock has risen by 532% since its public debut, marking it as a top growth stock.
The company’s share price experienced a significant decline of over 35% after reaching an all-time high, due to a pending class action lawsuit and reports from short sellers.
Despite challenges, AppLovin reported better-than-expected first-quarter results, leading to a 10% increase in its stock price earlier this month.
AppLovin Corp (NASDAQ: APP) is a prominent player in the tech industry, known for its software solutions that enhance marketing and monetization for online advertisers. Since its public debut in 2021, AppLovin has seen its stock rise by 532%, marking it as a top growth stock for investors. Despite recent challenges, the company remains a favored tech stock in the market.
On May 21, 2025, Valenzuela Victoria, the Chief Legal Officer and Corporate Secretary of AppLovin, sold 600 shares of Class A Common Stock at $366.50 each. This transaction comes amid a significant decline in AppLovin’s share price, which dropped over 35% after reaching an all-time high of $525.15 in February. The decline was due to a pending class action lawsuit and reports from short sellers.
Despite these challenges, AppLovin reported better-than-expected first-quarter results, leading to a 10% increase in its stock price earlier this month. Currently, the share price is 13.2% higher than at the start of the year and has surged 336.1% compared to the same time last year. This performance significantly outpaces both the S&P 500 and the Nasdaq.
AppLovin’s financial metrics reveal a price-to-earnings (P/E) ratio of approximately 63.43, indicating that investors are willing to pay over 63 times the company’s earnings for its shares. The price-to-sales ratio stands at about 23.61, suggesting the market values the company at over 23 times its annual sales. The enterprise value to sales ratio is around 24.23, reflecting the company’s total valuation in relation to its sales.
The company has a high debt-to-equity ratio of 6.45, indicating significant use of debt compared to equity. However, the current ratio of approximately 1.68 suggests a relatively healthy liquidity position, with current assets being 1.68 times current liabilities. Despite a challenging environment, AppLovin continues to focus on its core business, maintaining its position as a leading tech stock.
