IPO leader AppLovin soared as much as 25% Thursday after reporting strong earnings results on Wednesday. Additionally, the IBD SmartSelect Composite Rating for AppLovin stock climbed from 93 to a near-best 96.
The Composite Rating upgrade puts the app development platform in good company. Research shows that winning stocks often have a 95 or higher score in the early stages of a fresh price run, so that's a good item to have on a checklist when looking for the best stocks to buy and watch.
AppLovin Stock A Favorite Of Big Money Investors
The new score means AppLovin stock is now outperforming 95% of all stocks in terms of the most important fundamental and technical stock-picking criteria. Among its other key ratings AppLovin stock sports an A- Accumulation/Distribution Rating, showing that big money funds are eager buyers.
It has an OK 81 Earnings Per Share Rating and an excellent 96 Relative Strength Rating, meaning its stock outperformed 95% of all stocks over the past year.
AppLovin stock shot up to a 116 high in mid-November 2021, seven months after its April 2021 IPO. From there it began forming its first post-IPO base and dropped to a 9.14 low on Dec. 28, 2022, then turned up.
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Up 541%, With Long Runway
Thursday afternoon Palo Alto, Calif.-based AppLovin traded around 58, about 535% above its low, but still quite a ways below its all-time high. According to MarketSmith chart analysis, it has now climbed above a proper buy zone after clearing the 44.57 entry in a cup with handle.
On Wednesday the company reported 49 cents per-share earnings for the Dec. 31-ended quarter, a strong reversal from a 21-cent loss a year earlier. Fourth quarter revenue surged 36% to $953.3 million, up from 21% growth in the prior quarter.
AppLovin stock holds the No. 4 rank among its peers in the 36-stock Computer Software-Special Enterprise industry group. Digital advertising software maker DoubleVerify is the top-ranked stock in the group.
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