Home Stock Market Applovin's shares fell from the IPO price at launch

Applovin’s shares fell from the IPO price at launch


Shares of Applovin Corp. fell below the initial public offering price on Thursday, after IPO investors valued the company more than $ 28 billion.

Applovin
APPLICATION,
-14.81%

shares opened Thursday at $ 70, well below the IPO price of $ 80 a share in mid range the company suggested a week ago. In recent trading the stock traded at an intraday high of $ 71, hitting as low as $ 66.69 and down 13% from their IPO price at $ 69.50. Applovin’s $ 80 price tag of $ 28.6 billion, according to the number of shares on file filed with the Securities and Exchange Commission, has dropped by nearly $ 25 billion on the open market.

The Palo Alto, California-based company, which is due for a decade in July, creates marketing, monetization, and analytics software that helps app developers grow their businesses, while owning catalog of over 200 free mobile games. with in-app purchases.

Read: IPO Applovin: 5 things to know about software companies

In an interview, Applovin CEO and co-founder Adam Forshhi likened Applovin’s model to Netflix Inc.
NFLX,
+ 2.24%

“When you go to Netflix, you will see their content library and they show you based on what you’ve browsed and seen before, what you should join,” Fo roughhi told MarketWatch. “And part of their business is their own original content, extending their offerings to consumers to put some more data into their systems with consumption. We are built the same way in the app ecosystem. “

In the past 12 months, Renaissance IPO ETF
IPO,
+ 0.68%

rose 130%, while the S&P 500
SPX,
+ 0.99%

gained 50% and the tech-heavy Nasdaq Composite Index
COMP,
+ 1.13%

has increased 67%.

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