Recent IPO, Applovin, is a stock that has been on my radar for the last few weeks. I always like to screen for recent IPOs, as they have the potential for rapid price advances as the market loves new products and services. For those not familiar with this company, they specialize in helping mobile app developers publish, market, and profit off their creations. Applovin, ticker symbol $APP, provides everything someone would need to connect with new users and grow their business. In our increasingly mobile dependent world, I believe this is a product that has enormous potential for growth in 2021. With four quarters of accelerating sales, clearly something good is going on with Applovin.
From a technical perspective, APP has built quite an impressive chart since its' first day of trading in mid-April. The weekly chart is rounding out really well, with tight closes near the lows around $55 and most recently around $75. This is something I always like to look for, as it often signifies a large fund is coming in to support the stock at a particular price level.
A study by Investors' Business Daily found that IPO bases offer the largest potential for massive gains. Most recently, we have seen strong action in other recent IPOs such as SKYT, ZIM, UPST, SEMR, NGMS, and RBLX. This indicates appetite for growth stocks may be turning on. I currently have a half position in APP. I will be looking to add more shares should APP breakout to a new high on volume above the $75 level.
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Full Disclosure: I currently own SKYT, RBLX, UPST, and APP.
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