Dow Jones Today: Stocks Higher, Treasury Yields Decline Following PPI
Applovin Stock Soars After Earnings—Watch These Price Levels
20 minutes ago
AppLovin (APP) shares soared nearly 30% on Thursday after the artificial intelligence (AI)-powered advertising platform topped Wall Street’s fourth-quarter earnings expectations and issued a better-than-expected current-quarter outlook.
The company, whose software helps monetize gaming apps with targeted ads, projected first-quarter revenue of between $1.36 billion and 1.39 billion, handily surpassing the $1.32 billion expected by analysts. Executives said $1 billion of net sales will come from AppLovin’s advertising segment, adding that the company is still in the early stages of bolstering its AI models.
With Thursday’s gains, Applovin shares are up about 1,000% in the past year. Below, we break down the technicals on AppLovin’s weekly chart and point out key post-earnings price levels worth watching.
Since reaching their all-time high (ATH) in early December, AppLovin shares consolidated within a pennant, a chart pattern that signals a continuation of the stock’s uptrend.
While the relative strength index (RSI) confirms bullish price momentum with a reading above 70, a move higher into overbought territory also increases the chances of dips linked to profit taking.
To forecast an upside price target, investors can use the measured move technique, also known by chart watchers as the measuring principle.
When applying the analysis to AppLovin’s chart, we calculate the distance of the uptrend that immediately preceded the pennant in points and add that amount to the pattern’s upper trendline.
For example, we add $357 to $397, which projects an upside price target of $754, an area where investors may decide to lock in profits.
During pullbacks, the stock could see an initial dip to around $290. This level on the chart may provide support near the pennant pattern’s low, which closely aligns with the closing price of a weekly wide-ranging bar in early November.
Selling below this level opens the door for a drop to around $168, a price where the shares may attract buying interest near the closely-watched 50-period moving average and a brief range of consolidation prior to last November’s election-driven surge.
Finally, a deeper correction in AppLovin shares could trigger a decline to lower support around $116. Investors who employ buy-and-hold strategies could seek entry points in this region near the stock’s prominent November 2021 swing high.
Tesla Stock Rises on Inclusion in State Department Spending Forecast
1 hr 20 min ago
Tesla (TSLA) shares rose more than 6% Thursday morning after a U.S. State Department forecast was reported Wednesday afternoon, revealing that the electric vehicle maker is a possible choice for an estimated $400 million contract for armored electric vehicles.
The line item for “Armored Tesla,” which was changed to “Armored Electric Vehicles” late Wednesday, appears to have been added to the State Department’s procurement forecast in December, between U.S. President Donald Trump’s election win and inauguration. The inclusion of Tesla in the spending forecast was first reported by independent outlet Drop Site on Wednesday.
The New York Times reported on Wednesday that some of that $400 million would go to Tesla for its vehicles, while some would also go to another third-party contractor that would add security features like bulletproof glass.
A State Department spokesperson told Investopedia that no contract has been awarded for armored EVs, and said the request was made by the Biden administration to ask EV makers if they would be interested in making armored vehicles for the government. The process that would open bidding to EV makers is currently on hold, so the line item should have listed a generic term rather than a specific company.
Around the same area in the procurement document, the Department also includes allocations for other armored vehicles, with German automaker BMW the only other specific company named. Those other three contracts are worth a combined $130 million. All four contracts are expected to be awarded in the fourth quarter of 2025.
Tesla did not immediately respond to requests for comment.
Reddit Stock Slides as User Growth Misses Estimates
2 hr 7 min ago
Reddit (RDDT) reported fourth-quarter earnings that topped analysts’ estimates, but its user growth fell short, sending shares lower on Thursday.
The social media platform saw revenue grow 71% year-over-year to $427.7 million, topping the analyst consensus compiled by Visible Alpha. Net income came in at $71 million, up from $18.5 million a year ago and above expectations. However, Reddit’s 101.7 million daily active users in the period fell short of the 103.24 million analysts were looking for, despite growing 39%.
Looking ahead, Reddit said it expects first-quarter revenue of $360 million to $370 million, compared to $243 million a year earlier and above the analyst consensus at the midpoint.
Shares of Reddit were down more than 4% at $206 Thursday morning. The stock closed at a record high Friday, and was up nearly sevenfold from its initial public offering price of $34 in March 2024 through Wednesday’s close.
Stock Futures Tick Up After January PPI
3 hr 11 min ago
Futures contracts connected to the Dow Jones Industrial Average were up 0.1% in premarket trading on Thursday.
S&P 500 futures were effectively unchanged.
Nasdaq 100 futures were nearly 0.2% higher.