Markets rewarded investors who took advantage of the sell-off in shares of Applovin (APP). APP stock fell from over $600 in May to a low of around $450. It closed at $564.61 on Wednesday.
The advertising firm did not post any fundamental news, yet the stock gained 9.6%. On June 22, Citi took the stock off the 90-day catalyst watch. Since the report that warned about a slow ramp in eCommerce clients following Axon’s general availability, APP stock gained around $100/share.
Readers might speculate that markets rotated out of the red-hot chip sector. They sold Micron (MU) shares to lock in the gains and bought software stocks. ServiceNow (NOW) and Salesforce (CRM) also rose.
Coinbase (COIN) gained nearly 9%. With Visa (V) and Mastercard (MA) also uniting with BlackRock to support Open USD (“OUSD”), COIN stock might end its downtrend from here. Short sellers hold a 12.49% short interest.
Meta Platforms (META) traded as high as ~ $623 on Wednesday. The firm reportedly considered buying Kalshi until it decided to build an in-house prediction market called Arena.
Meta might build a cloud business that will harvest its excess AI computing power. This would offset the considerable losses growing from the build-out of Meta AI. Offering a neocloud would create competition with CoreWeave (CRWV), IREN, Applied Digital (APLD), and Nebius (NBIS).
