AppLovin Corporation's stock experienced a sharp decline of 5.06% during pre-market trading on Wednesday. The mobile advertising technology company saw significant selling pressure ahead of the opening bell.
The pre-market drop follows recent strength in the stock, which had rallied 13.2% on Monday and gained another 2.7% on Tuesday. Today's movement comes as the company is scheduled to report its fourth-quarter financial results after the market closes.
Market participants appear to be taking profits and adjusting positions ahead of the earnings announcement, despite RBC Capital maintaining a Buy rating on the stock with a $700 price target. Analysts are expecting revenue of $1.60 billion, representing year-over-year growth of 26.50%, with estimated EPS of $2.93 for the quarter.