AppLovin posted better-than-expected earnings and revenue
AppLovin Corp (NASDAQ:APP) was last seen up 0.5% to trade at $619.50, paring earlier gains after the company posted better-than-expected third-quarter earnings of $2.45 per share on revenue of $1.41 billion and lifted its current-quarter revenue guidance. No fewer than seven analysts hiked their price targets in response, including J.P. Morgan Securities to $650 from $425.
On the charts, AppLovin stock has seen choppy trading since its Sept. 29 record high of $745.61, though support at the 50-day moving average has helped keep losses in check the past few weeks. Year to date, the equity is outperforming with a 90% lead.
Over in the options pits, APP has seen 37,000 calls and 23,000 puts exchanged so far -- double the options volume typically seen at this point. The weekly 11/7 700-strike call is the most popular contract, and also happens to be where there is the most call open interest.
Short interest is down 21.4% over the last two weeks, but still represents 6.9% of the stock's available float. It would take shorts 2.3 days to cover at APP's average pace of daily trading.