How Rebalancing Could’ve Protected You from APP’s 56% Collapse
As tariffs roil the market and hit many stocks—we examine one stock in particular and how Investor's Compass could have protected you from downside risk and positioned you to buy back lower
Just do Something! AppLovin
AppLovin Corporation (APP) was one of the biggest winners of 2024, surging from $38.78 on January 2 to $323.83 by December 31—a stunning 735% return in just one year. The rally extended into 2025, with APP climbing to an intraday high of $510.13 on February 14, delivering another 57.5% gain in just six weeks.
Basic investment management espouses managing risk by rebalancing but there were many investors that were reading the analysts’ reports that had a $650 price tag on the stock. Why sell a winner when there is more upside?
But that euphoria didn’t last.
In March, the market was rocked by the rapid implementation of sweeping tariffs under the Trump administration, triggering a sharp correction across equity markets. Stocks with extended valuations and speculative momentum—like APP—were hit hardest.
As of this writing, APP is trading near $220, down 56% from its February peak.
So how could an investor have protected themselves
Enter Investor’s Compass: Built for Risk Management
At Investor’s Compass, powered by the DynaLogic system, we don’t guess. We follow rules.
Our system issues Trim/Sell signals as securities reach pre-determined price thresholds. Instead of riding the hype, we automatically recommend taking gains and holding that value as Opportunity Cash—capital ready to be redeployed when prices correct.
Let’s say you invested $100,000 in APP on January 2, 2024, and followed the DynaLogic signals throughout the rally:
📈 By February 14, 2025, your APP position would’ve been worth $650,349.
💰 Of that, $267,456 would have already been sold and moved to cash, ready for reinvestment, income needs, or alternative allocations.
Now compare that to an investor who held through the hype. They’d be sitting on a 56% paper loss from the February peak, with no liquidity and no cushion.
The Lesson: The Process Works
When headlines are bullish and price targets are rising, it's tempting to hold and hope. But the market doesn’t care about analyst opinions—especially in moments of political or economic shock.
Investor’s Compass is built to manage risk before it becomes a headline.
✅ Trim when others chase.
✅ Reinvest when others panic.
✅ Let rules—not emotion—guide your portfolio decisions.
Let Investor’s Compass help you navigate volatility with confidence.
📩 If you’re not using a data-driven rebalancing strategy yet, now’s the time start.