Why AppLovin Corp. (APP) Went Up On Tuesday?

We recently published a list of Pulse of The Market: Tuesday’s 10 Top Performers. In this article, we are going to take a look at where AppLovin Corp. (NASDAQ:APP) stands against other Tuesday’s top performers.

A lackluster trading persisted on the stock market on Tuesday, with all major indices finishing in the green territory, but eked out only slight gains.

The tech-heavy Nasdaq rallied the most, up 0.46 percent, followed by the S&P 500 with 0.16 percent, and the Dow Jones with a marginal 0.01 percent.

Despite the muted trading, investors poured funds into several companies, pushing their prices to achieve modest gains. In this article, we listed the 10 top performers today and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.

AppLovin Corp. (NASDAQ:APP)

AppLovin extended its winning streak for a fifth straight day on Tuesday, adding 1.93 percent to close at $346.29 apiece despite the lack of positive catalysts to spark buying appetite.

Based on its historical share price data, APP continues to attract investor interest despite the company being embroiled in a class action lawsuit over allegations of possible securities violations.

According to the lawsuit, APP provided investors with material information concerning its financial growth and stability.

“[APP’s]’ statements included, among other things, confidence in [its] launch of AXON 2.0 digital ad platform and using “cutting-edge AI technologies” to more efficiently match advertisements to mobile games, in addition to expanding into web-based marketing and e-commerce,” one of the investigating law firm’s statement said.

“Moreover, defendants publicly reported impressive financial results, outlooks, and guidance to investors, all while using dishonest advertising practices,” it added. APP has yet to comment on the allegations.

Overall, APP ranks 10th on our list of Tuesday’s top performers. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as APP but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.