Why AppLovin Stock Rebounded Powerfully on Tuesday
Key Points
The shares rallied strongly after Monday's sell-off.
An analyst's bullish note helped sentiment.
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A day after getting whacked by the market, AppLovin (NASDAQ: APP) stock staged an impressive rally on Tuesday. The mobile marketing company enjoyed a nearly 8% boost in its share price that trading session; it seems that worries about a possible regulatory action were fading. Sentiment was also helped by an analyst's bullish take on the stock.
Shrugging off concerns
The Monday rout was due largely to an article in Bloomberg which, citing "people familiar with the matter," stated that the Securities and Exchange Commission (SEC) had launched a probe centered on AppLovin's data collection efforts.
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One person who wasn't overly spooked by that report was Oppenheimer stock analyst Martin Yang. Well before market open Tuesday, he published an update in which he reiterated his positive outlook on AppLovin's future.
Yang reiterated his outperform (buy, in other words) recommendation on the stock, and his price target of $740 per share, according to reports.
Still a good long-term play, says prognosticator
Not surprisingly, the pundit's update focused on the apparent SEC investigation. He expressed concern that the Bloomberg story and potentially new short-seller reports -- more than one of which helped trigger the probe, according to the financial news agency -- could lead to more volatility for AppLovin stock. However, he said his long-term buy thesis on it remained.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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