Forced Buying Opportunity in AppLovin (APP) via S&P 500 Inclusion

about 2 months ago

Christine Aquino

"AppLovin ticker APP shares up more than 11 percent. Bloomberg Intelligence is forecasting its third quarter sales guidance to be between 10 to 12 percent growth, significantly higher than the consensus estimate of 8 percent. With its S&P 500 index inclusion, passive funds will likely be forced to purchase the stock."

The podcast highlights AppLovin (APP) as a tradeable opportunity due to its recent S&P 500 inclusion, which will likely compel passive funds to buy the stock. Coupled with stronger than expected Q3 guidance (10-12% growth vs 8% consensus) and positive product developments, this creates a short-term bullish scenario for momentum investors.

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