AppLovin (APP): Consolidates within an uptrend

We have received an inquiry on AppLovin (APP). In summary, the stock tilts bullish within a developing cup and handle formation.

APP has corrected lower after stalling near its early October high at 745.61 in late December. Given the stock's intermediate to long-term uptrend as defined by rising 26- and 40-week moving averages at 568 and 485, respectively, this pullback has the potential to form the handle of a late 2025 into early 2026 bullish cup and handle formation.

Holding the Fibonacci retracement zone for the rally from the cup low to the developing handle high at 643 (38.2%), 613 (50%), and 584 (61.8%), which are all above the rising 26-week moving average near 568, would bode well for this developing bullish pattern.

If these supports hold, it would position APP for the next step, which is a decisive break out above the late 2025 peaks at 738.01-745.61. This breakout is required to confirm the bullish cup and handle pattern and suggest upside to 850 (February-September base pattern count) and then toward 985 (late 2025-early 2026 cup and handle count).

APP remains within a bullish trend relative to the S&P 500, which corroborates the bullish absolute price setup highlighted above.

Chart 1: AppLovin (APP) and relative to the S&P 500 (bottom)