Bulletin
Investor Alert

IPO Report Archives | Email alerts

April 15, 2021, 4:21 p.m. EDT

Applovin stock falls nearly 20% from IPO price in debut

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Applovin Corp. Cl A (APP)
  • X
    Netflix Inc. (NFLX)
  • X
    Renaissance IPO ETF (IPO)

or Cancel Already have a watchlist? Log In

By Wallace Witkowski

Applovin Corp. shares opened below their initial public offering price in their trading debut Thursday and never recovered, after IPO investors valued the company at more than $28 billion.

Applovin /zigman2/quotes/226004863/composite APP +14.82% shares opened Thursday at $70, well below the IPO price of $80 a share that was in the middle of the range the company proposed a week ago. The stock closed down 18.5% from its IPO price at $65.20, following an intraday high of $71.51 and a low of $63.

The $80 IPO price valued Applovin at $28.6 billion, according to the share count included in filings with the Securities and Exchange Commission, but by the end of the day that valuation was cut to $23.3 billion.

The Palo Alto, Calif.-based company, which will be a decade old in July, makes marketing, monetization and analytics software that helps app developers grow their businesses, while also owning a portfolio of more than 200 free-to-play mobile games with in-app purchases.

Read: Applovin IPO: 5 things to know about the software company

In an interview, Applovin Chief Executive and co-founder Adam Foroughi likened Applovin’s model to Netflix Inc. /zigman2/quotes/202353025/composite NFLX +1.38%

“When you go to Netflix, you see their content library and they show you based on what you browsed, and viewed before, what you should engage with,” Foroughi told MarketWatch.

“And part of their business is their own original content, which expands their offerings to consumers to get some more data into their system with consumption,” Foroughi said. “We’re built the exact same way within the app ecosystem.”

Over the past 12 months, the Renaissance IPO ETF /zigman2/quotes/207665280/composite IPO +4.48% has gained 130%, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.49% has gained 50%, and the tech heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +2.32% has risen 67%.

/zigman2/quotes/226004863/composite
US : U.S.: Nasdaq
$ 57.26
+7.39 +14.82%
Volume: 1.20M
May 14, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$17.85 billion
Rev. per Employee
$1.61M
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 493.37
+6.71 +1.38%
Volume: 2.88M
May 14, 2021 4:00p
P/E Ratio
59.74
Dividend Yield
N/A
Market Cap
$215.79 billion
Rev. per Employee
$2.66M
loading...
/zigman2/quotes/207665280/composite
US : U.S.: NYSE Arca
$ 56.45
+2.42 +4.48%
Volume: 151,964
May 14, 2021 4:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,173.85
+61.35 +1.49%
Volume: 1.91B
May 14, 2021 5:02p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
13,429.98
+304.99 +2.32%
Volume: 3.61M
May 14, 2021 5:16p
loading...

Get news alerts on Applovin Corp. Cl A — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.