Last month, AppLovin (NASDAQ: APP) was punished by investors more for what it didn't do than for what it actually did. A hoped-for graduation to a top stock index was one of the non-occurrences, while a short-seller felt compelled to write a scathing report on the company. In some respects, AppLovin was fortunate that its stock didn't decline more deeply than the sub-11% dip it experienced across June.

The index let-down, such as it was, occurred near the top of the month. Every quarter, S Dow Jones Indices, the operator of the closely followed S 500 index (among many others), likes to "rebalance" the index, replacing component stocks deemed no longer suitable with new ones.

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Source Fool.com