By Mackenzie Tatananni

AppLovin stock was falling sharply Monday after the software company wasn't added to the S&P 500 during the index's quarterly rebalancing.

Shares of AppLovin fell 16% to $338.84 and were on track for their lowest same-day percentage decrease on record, according to Dow Jones Market Data. Coming into Monday, the stock had soared 750% this year.

Barron's reported Friday that the stock was a promising candidate to join the S&P 500, seeing as it boasted one of the largest market values of any companies not included in the index. Workday and Apollo Global Management were the only two companies added to the index on Friday.

AppLovin, a California-based tech company, was founded in 2012 to help app developers reach new audiences. At the heart of the business is an in-house artificial-intelligence program called Axon that targets advertisements to users.

Revenue jumped 39% to $1.2 billion in the quarter ended Sept. 30, while earnings before interest, taxes, depreciation and amortization climbed 72% to $722 million.

The company began trading on the Nasdaq in April 2021 at an initial public offering price of $80. It has gained 330% from its IPO price on Monday and up 427% from the closing price on its first trading day.

As AppLovin declined Monday, competitors also fell. Trade Desk was down 3.9% to $133.67.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

December 09, 2024 12:23 ET (17:23 GMT)

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