AppLovin shares surged nearly 30% higher in extended trading on Wednesday, beating analyst estimates for Q4 earnings and issuing a better-than-expected current-quarter outlook. The company’s AI-powered advertising platform topped Wall Street’s fourth quarter earnings expectations.
AppLovin projected first-quarter revenue of between $1.36 billion and $1.39 billion, surpassing the $1.32 billion expected by analysts. The company also announced that it expects to generate $1 billion in net sales from its advertising segment.
In a bullish move, AppLovin shares have jumped 17% since the start of the year, with a staggering 700% increase over the past 12 months due to surging demand for its AI-powered advertising system.
Technical analysis suggests that AppLovin’s stock is poised for further gains. The company’s price looks set to break out from a pennant pattern on Thursday, setting the stage for a continuation move higher. A measured move technique forecasts an upside price target of $754.
However, investors should also watch major support levels around $290, $168, and $116. These levels may provide support during potential retracements, but selling below these levels could trigger a drop to lower support areas.
Overall, AppLovin’s strong earnings and outlook have sent its shares soaring, with the company poised for further gains in the coming days.
Source: https://www.investopedia.com/applovin-stock-surged-nearly-30-percent-after-earnings-watch-these-key-price-levels-11679071