AppLovin stock price has imploded this month, ending one of the biggest rallies in Wall Street in the past few months. APP shares plummeted to a low of $290, its lowest level since November 15. It has plunged by almost 40% from the highest point this year. So, what next for the stock?

Why AppLovin stock price crashed

AppLovin has been one of the brightest stars on Wall Street in the past two years. A company that was little known soared from $9.75 in 2023 to $520 earlier this month. This transitioned it into one of the biggest companies on Wall Street with a market cap of over $230 billion. 

The ongoing AppLovin stock crash was in line with our expectations, as we wrote here, here, and here. 

APP is highly overvalued

The most important reasons why the AppLovin stock price has plummeted is that it became highly overvalued. While the company is growing, there is no way to justify a $230 billion valuation.

That’s because AppLovin’ revenue in 2024 stood at over $4.7 billion, a big increase from the $3.2 billion that it made a year earlier.  AppLovin’s net income jumped from $356 million in 2023 to $1.58 billion in 2024. 

The most recent results showed that AppLovin’s revenue rose to $1.32 billion, up from $953 million in the same period a year earlier. Its net income rose from $476 million to $848 million.

Analysts expect that AppLovin business will continue to do well this year. The average estimate is that its revenue will grow by 30% in the first quarter to $1.38 billion, followed by 30.90% in Q2 to $1.41 billion. This growth will lead to an annual revenue of $5.8 billion, followed by $7 billion next year.

While these are good numbers, they don’t justify a $230 billion valuation. That’s because this valuation gives it a forward 2026 price-to-sales (P/S) ratio of 32, which is much higher than most countries. 

This P/S figure simply means that one would take about 32 years to recover his investment if he acquired the company today, assuming that its growth stops. It would take over 50 years to breakevem since the firm has a forward P/E ratio of 50.5.

Wyckoff Theory explains the AppLovin stock crash

The other reason why the AppLovin share price has crashed is known as the Wyckoff Theory. 

Wyckoff is a 90-year old theory that explains how asset price move over time. The first phae is known as accumulation, and in it, an asset remains in a consolidation. Investors then start to take note of the firm, such as when it publishes strong results.

It then moves to the markup phase, which is characterized by a parabolic move as the fear of missing out (FOMO) intensifies. AppLovin stock has been in this stage since late 2023. 

The next stage is known as distribution, and is characterized by a battle between bears and bulls. It typically has some big moves as bulls buy the dip and bears sell each rebound. 

AppLovin stock will then move to the markdown phase, which happens when there is a panic selling among investors. 

AppLovin stock price technical analysis

The weekly chart shows that the APP share price peaked at $528 this year, and has now plunged to $320. It has moved below the 38.2% Fibonacci Retracement level, while all oscillators have pointed downwards. 

Therefore, the APP share price will likely keep falling as sellers target the 61.8% Fibonacci Retracement level at $200, down by almost 40% from the current level.

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The FTSE 100 index had a good week as it continued to beat its American peers like the S&P 500 and Nasdaq 100 indices. It rose for three consecutive days and reached a high of £8,756, its highest level since February 19. It is hovering near its highest level on record at £8,820. 

The Footise did well as some popular constituent companies like Rolls-Royce, Aviva, IAG, and St. James Place published strong financial results. Rolls-Royce share price soared to a record high after the company met its annual target early, raised its outlook, and boosted its dividend payouts. 

FTSE 100 companies to watch next week

While the UK earnings season is slowly coming to an end, several important companies are expected to publish their numbers next week. The most notable ones will be Anglo American, Abrdn, ITV, Greggs, Entain, and Flutter Entertainment. 

Anglo American (AAL)

Anglo American share price will be in the spotlight as the mining giant publishes its financial results on Monday. These numbers will come at an important period for mining companies as jitters around the global economy remain. One concern is that Donald Trump’s tariffs will lead to a weaker demand for metals. 

The Anglo American share price has remained in a consolidation phase in the past few months. In this period, it has formed a symmetrical triangle pattern, which is about to near its confluence. Therefore, next week’s earnings will likely be the trigger that spurs either a bullish breakout or a breakdown. 

Abrdn (ABDN)

Abrdn, formerly known as Standard Life Aberdeen, is another FTSE 100 index to watch next week. These numbers come as the stock attempts to regain its momentum. It has already jumped from a low of $130.70 in 2025 to $156. Most recently, the stock formed a golden cross pattern as the 200-day and 50-day Exponential Moving Averages (EMA) crossed each other. 

ABDN stock has also formed a bullish flag pattern, which is made up of a long vertical line and a small consolidation. This is a highly popular bullish continuation sign, meaning that its stock may trigger a strong bullish breakout, potentially to $173.80, its highest swing in October last year. 

ITV (ITV)

ITV is another popular FTSE 100 index stock to watch when it publishes its financial results next week. These numbers will come after the stock crashed following the management’s decision to invest $100 million to diversity efforts.

There have also been rumors that the company was exploring strategic alternatives, including a sale. One of the recent rumours is that it is considering merging its production studio with All3Media, a company owned by RedBird IMI. Therefore, the management will likely provide more color about its business and these talks when it releases its financial results. 

Entain (ENT) and Flutter Entertainment (FLUT)

Entain share price was trading at 750p on Friday, 22% above the lowest level this year and 10% below the December high. It is barely moved from where it was the same period in 2024.

Flutter Entertainment, its top competitor, has done better as its stock soared to 21,810, up by 77% from its lowest level in July. 

These two companies will also publish their numbers next week, providing more details about their operations. Flutter has done much better than Entain because of its ownership of Fanduel, the biggest player in the United States.

Other Footsie stocks to watch

The other top Footsie shares to watch next week will be Greggs, Beazley, Fresnillo, Bunzl, Endeavour Mining, and Just Group that will publish their financial results. 

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Abercrombie & Fitch (ANF) stock has plunged this year, erasing some of the gains made in 2023 and 2024, when it emerged as the best-performing retail stock. ANF has plunged to a low of $100, its lowest level since January 29. So, is the ANF stock a good buy ahead of its earnings report?

Abercrombie & Fitch growth has eased

ANF has been one of the top performing companies in the retail industry in the past few years, a move that investors attribute to the management’s turnaround efforts.

Abercrombie & Fitch’s revenues have grown from $3.12 billion in 2021 to over $4.2 billion in 2023. The trailing twelve month (TTM) revenue jumped to over $4.8 billion, as many young people switched to its business.

The company has also become highly profitable as its annual net profit jumped to $328 million in 2023 and $537 million in the trailing twelve months. 

This growth helped to supercharge its business and its stock price, which jumped from $13.6 in 2023 to nearly $200 in May last year. 

There are concerns that its business trajectory may be slowing. The most recent financial results showed that Abercrombie & Fitch’s revenue rose by 14% to $1.2 billion, helped by its core A&F and Hollister brands, which are having similar growth patterns.

Its Americas net sales rose by 14% to $986 million, while the EMEA division grew by 15% to $182 million and the smaller APAC region grew by 32% to $41 million.

The main concern is that Abercrombie & Fitch may be peaking. Analyst expect that its annual revenue in 2024 was $4.93 billion, a 15% annual increase, followed by $5.28 billion in 2025. That will translate to a slowdown from 15% to 7%. 

ANF earnings ahead

The next important catalyst for the ANF stock price will be its financial results, which will come out on March 5. 

These results will provide more color about its business and whether it continued to attract more customers during the quarter.

The average estimate is that Abercrombie & Fitch revenue will be $1.57 billion, a 7.9% increase from the same period a year earlier. The forward guidance, which is what most analysts focuses on, is expected to be $1.08 billion, a 6.2% annual growth rate. 

ANF’s earnings per share are expected to come in at $3.56, higher than the $2.97 it made a year earlier. This will lead to an annual EPS of $10.68. Odds are that the company’s earnings per share will be better-than-expected as it has done in the past few quarters. 

Analysts are generally upbeat about the ANF stock price, with the average estimate being $177, higher than the current $101.4. 

Read more: Abercrombie & Fitch stock: the moment of clarity nears

ANF stock price analysis

ANF stock chart | Source: TradingView

The best way to explain the ongoing Abercrombie & Fitch stock price action is known as the Wyckoff Theory. As shown above, the stock remains in a tight range for years. This range-bound price action is part of the accumulation phase of this theory.

ANF stock price then entered the markup phase and surged from $13 in 2023 to near $200. The markup phase is characterized by higher demand and the fear of missing out, commonly known as FOMO.

It has remained in the distribution phase since May 2024 when it surged to a record high. This phase is characterized by an intense battle between bulls and bears in the market.

Abercrombie & Fitch stock has now crashed below the support at $121.70, its lowest level on August 5 and $108.70, its lowest swing in April. 

Most importantly, it has moved slightly below the 50% Fibonacci Retracement point at $100, a move that will trigger panic selling among investors. Therefore, the ANF share price will crash to $80, its 61.8% retracement point. This view is about 21% below the current level, followed by $47.75, down by 52% from the current point. 

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Cryptocurrency prices suffered a big dive this week costing investors billions of dollars. Bitcoin has retreated below $80,000, while the total market cap of all these coins plunged by 5.40% to $2.64 trillion. This means that crypto investors have lost almost $1 trillion in the past few months.

Why Jasmy, Solana, Shiba Inu, Pepe, and altcoins crashed

Most altcoins have suffered a big reversal this week. Jasmy price dropped to a low of $0.0170, its lowest level since November 5 and 72% below the highest level in November last year. 

Similarly, the Solana price dived to $127, down from almost $300 a few months ago. Shiba Inu price tumbled to $0.00001337, down sharply from $0.00003326, while Pepe coin fell to $0.0000075. 

There are three main reasons why Bitcoin and these altcoins plunged: falling fear and greed index, technicals, and Donald Trump’s tariffs and impact on inflation. 

Fear and greed index has dropped

The first main reason why altcoins like Jasmy, Solana, Shiba Inu, and Pepe have plummeted is that investors have increasingly become more fearful in the market today.

A look at the CBOE S&P 500 index, commonly known as VIX, shows that it has jumped in the past seven consecutive days and remained above $20. A high VIX index is usually a sign that the market is more volatile.

The CNN Money fear and greed index has moved to the extreme fear zone of 18. This drop happened as many subindices dropped to the extreme levels. 

For example, the market momentum, stock price strength, put and call options, and safe haven demand have moved to the extreme fear zone. The other subindices like the junk bond demand and market volatility have moved to the fear zone. The crypto fear and greed index has also continued falling this month.

Crypto prices crash when investors are fearful because it leads to increased panic selling and low demand as investors stay in the sidelines. 

Bitcoin price double-top

Altcoin prices have crashed after Bitcoin price formed a double-top pattern at $108,200. As shown below, this double-top had a neckline at $89,100, where the coin crashed below this week. Bitcoin has also plunged below the 200-day moving average. 

Therefore, there are odds that the BTC price will crash to $73,614, the highest level in March last year. That crash would be bullish because it will signal that it has formed a break and retest pattern, a popular reversal sign. Most altcoins crash whenever Bitcoin is not doing well as is happening today.

Donald Trump tariff and the Federal Reserve

Altcoins like Shiba Inu, Pepe, Solana, and Jasmy prices are falling after Donald Trump insisted that his tariff proposals would go on in March. He has suggested numerous tariffs. From a country perspective, he has placed tariffs on Canadian and Mexican goods. He has also hinted that the country will have reciprocal tariffs and a 25% one on steel and aluminum.

These tariffs will brng the country to a stagflation, a situation where an economic slowdown is accompanied by high inflation. Stagflation has no easy solution since each Federal Reserve activity has an unintended consequence. 

High interest rates to slow inflation will often lead to a slow economic growth, while low rates will lead to higher inflation. Now, analysts expect that the Fed will cut rates to boost the economy and prevent a recession. 

Crypto prices usually drop when there are these uncertainties. This explains why American stocks like IVV, SPY, and VOO ETFs have crashed recently.

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The Opera stock price has pulled back in the last two consecutive weeks, erasing some of the gains made earlier this year. OPRA has dropped from $22.5 to $18 as investors remained concerns about its growth trajectory. So, will the Opera share price rebound after its strong earnings?

Opera’s business is doing well

Opera is a technology company that operates in the interesting business of browsers that companies like Google, Apple, and Microsoft dominate.

It operates a popular desktop and mobile browser that millions of users worldwide use. These users appreciate the quality of its applications, which they believe is better than preinstalled apps like Chrome, Safari, and Edge.

Opera makes most of its money from Google, which pays it millions of dollars a year to have it as the default search engine. It then receives millions of dollars from advertisers like Booking, Facebook, Netflix, and Amazon.

Opera published strong financial results, which showed that its business continued doing well in the fourth quarter. 

These results showed that the revenue rose by 29% to $145.8 million in the fourth quarter, bringing its annual figure to $480 million.

This growth happened as the search revenue increased by 17% and its advertising segment grew by 38%. The growth was also driven by the Opera GX Browser, which is mostly used by gamers. 

Analysts are optimistic that Opera’s business will continue doing well. The average revenue estimate for the current quarter is $131 million, up by 28% from the same period in 2023. These are strong numbers since Opera has been around for many years.

Opera’s annual revenue will grow by 15% this year to $552 million, followed by $642 million next year. 

The company’s earnings will also return to growth, with analysts expecting the quarterly EPS to move from 34 cents to 49 cents. 

Analysts are optimistic about OPRA stock

Analysts are hopeful that the Opera share price will continue rising. Those at Piper Sandler, TD Cowen, Lake Street, and Goldman Sachs have a buy rating fo the stock. As a result, the average Opera stock price forecast by analysts is $34, higher than the current $17.98. 

Opera is also an undervalued company since it has a solid balance sheet and room to grow its business. It has over $106 million in cash and equivalents and no debt.

Opera has several risks ahead. The most notable one is that it makes most of its money from Google. Companies that depend on one or a few customers are always at a risk if the company decides to cut it off. 

However, with Opera’s users growing, it is unlikely that Google would want to do that. Also, a decision by Google to cut it off would offer an opportunity for Microsoft to ink a similar deal.

Opera stock price analysis

The weekly chart shows that the OPRA stock price has rebounded after bottoming at $9.65 in October 23rd to a high of $22.52. This rebound was in line with our recent OPRA stock forecast.

It formed an ascending channel and has remained above the 50-week Exponential Moving Averages (EMA).

This channel closely resembles a rising wedge since the two lines are converging. This convergence has a long way to go, meaning that the stock may rebound, and possibly retest the upper side. 

A complete Opera stock price breakout will be confirmed if it moves above the upper side of the wedge at $22.52. That move may take it to the all-time high of $26.51. 

On the other hand, a drop below the lower side of the wedge will point to more downside to the 50% retracement level at $14.95. 

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