AppLovin Stock Selloff Creates Contrarian Options Opportunity Amid S&P 500 Exclusion
AppLovin's (APP) 22% plunge since early June accelerated after S&P Global passed on adding the mobile ad-tech firm to its flagship index—a decision that triggered an 8% single-day drop. The exclusion deprives APP of automatic institutional inflows from index funds, but analysts argue the selloff overstates the long-term impact.
Stone Fox Capital maintains a bullish stance, citing the company's Core advertising platform growth. Elevated implied volatility now makes APP options unusually cheap for traders betting on a rebound. This remains a high-stakes play: the stock must prove its fundamentals outweigh the missed S&P catalyst.