The shares of software company AppLovin (APP) have surged in price over the past few days after the company announced impressive third-quarter earnings and investors’ optimism was buoyed by its announcement that it plans to acquire MoPub. So, can the stock rally amid stiff competition? Read on.Palo Alto, Calif.-based mobile application technology company AppLovin Corporation (APP) had a disappointing stock market debut on April 15, 2021 and its shares closed down 18.5% on the day. However, the stock has gained 28.9% in price over the past month and 97.3% over the past three months to close Friday’s trading session at $112.36.
Also, its shares soared to hit their 52-week high of $116.09 on November 11, 2021, on the back of impressive third-quarter earnings and investors’ optimism surrounding its proposed acquisition of MoPub from Twitter, Inc. (NYSE:TWTR).
However, the Schall Law Firm had announced in April 2021 that it is investigating APP on potential securities laws violations. Furthermore, the company faces intense competition from other players, such as Unity Software Inc. (U) and Playtika Holding Corp. (PLTK). So, the stock’s near-term prospects look uncertain.