AppLovin is proving to be a volatile stock to own, and while it may seem cheap, given how far it has nosedived in price, its P/E multiple remains high, and buying it at its current levels would give investors little-to-no margin of safety should business slow down due to worsening economic conditions.

AppLovin Corp (APP) is currently one of the highest-momentum tech stocks on the market and, understandably, has elevated implied volatility to match. APP shareholders were getting giddy after a mesmeric rise from ~$50 to over $500 per share.

Shares of mobile app advertising platform AppLovin (NASDAQ: APP) fell 11% in the morning session after markets tumbled, extending the weakness from the previous week as concerns over the ongoing trade war continued to spread.