What's Going On With AppLovin Shares Today?

Applovin Corp. (NASDAQ:APP) shares are trading lower Tuesday continuing a decline that began in Monday's after-hours session after The Trade Desk Inc. (NASDAQ:TTD) was selected to join the S&P 500.

What To Know: The S&P Dow Jones Indices announced that The Trade Desk will replace Ansys Inc. in the index, effective July 18. Inclusion in the S&P 500 often brings increased exposure and demand from index-tracking funds, which can act as a catalyst.

AppLovin had been considered a strong candidate for potential inclusion. AppLovin shares fell around 2.5% after hours on Monday following the announcement. This wasn't the first time AppLovin shares reacted negatively to index-related news. Earlier this month, the stock also moved lower after Datadog was picked to replace Juniper Networks in the index, another move that sidelined AppLovin's chances at near-term inclusion.

Separately, AppLovin was featured in Jim Cramer's recently coined "PARC" basket of stocks. It groups four retail-driven stocks that also include Palantir Technologies, Robinhood Markets and Coinbase Global. While the PARC label reflects ongoing retail interest, AppLovin has lagged its peers in both price performance and momentum this year.

Despite being part of a group associated with retail enthusiasm, AppLovin's setup lacks the strong bullish signals seen in other high-profile retail favorites. AppLovin shares are up approximately 8.93% year-to-date, well behind the other names in Cramer’s new index. However, AppLovin shares have gained approximately 43% over the past three months and the stock has a strong momentum score of 97.89, according to Benzinga Pro.

APP Price Action: AppLovin shares were down 0.72% at $353.32 at the time of publication Tuesday, according to Benzinga Pro.

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