Home / Business and Economy / Sell Half? Cramer's Advice on 400% AppLovin Gain
Sell Half? Cramer's Advice on 400% AppLovin Gain
17 Sep
Summary
- Jim Cramer advised selling half of AppLovin stock after a 400% rise.
- AppLovin reported $1.92 billion in revenue, up 52.4% year-over-year.
- Intensifying competition from larger tech firms poses a challenge.
On September 11, 2026, during an episode of Mad Money, Jim Cramer addressed concerns about AppLovin Corporation (NASDAQ:APP), a stock that had experienced approximately 400% gains, reaching an 800% peak before a subsequent 51% decline. Cramer recommended a strategy of selling half the holdings immediately and the remaining half on any upward movement, suggesting the stock's prime momentum might have passed.
AppLovin's core platform is powered by its AXON artificial intelligence advertising engine, contributing to strong monetization in mobile and e-commerce. In the second quarter of 2026, the company announced total revenue of $1.92 billion, a 52.4% increase from the previous year. Operating and free cash flows remained robust at $869 million and $863.3 million, respectively.
Despite these strong financial indicators, AppLovin faces execution risks and market headwinds. Citi analyst Jason Bazinet maintained a Buy rating with a $600 price target, countering concerns about third-quarter guidance. However, Cramer's caution stems from increased competition as major technology players expand into the digital advertising space, potentially impacting AppLovin's growth.
As of the second quarter of 2026, 88 hedge funds held stakes in AppLovin, with Kensico Capital owning the largest position. The short interest percentage of float was 3.63%. The situation highlights the challenges for high-growth companies when larger competitors enter their market, balancing profit margins and cash generation against sustained explosive growth.
