AppLovin (APP) Drops as Investor Sentiment Dented by Non-S&P Inclusion

We recently published a list of 10 Stocks Take A Shocking Nosedive. AppLovin Corporation (NASDAQ:APP) is one of the worst-performing stocks on Thursday.

AppLovin declined by 4.46 percent on Wednesday to close at $344.37 apiece as investors unloaded portfolios while waiting for updates on key economic developments.

Additionally, sour sentiment lingered following its surprising non-inclusion to the S&P 500 index, after Bank of America and Barclays both expressed confidence that it will join the index’s recent rebalancing.

According to the two investment firms, AppLovin Corporation (NASDAQ:APP) met the criteria of at least $20.5 billion in market value and GAAP profitability over the past four quarters.

Getting included in the S&P 500 can be advantageous to stock components as it exposes them to a wider group of investors.

A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.

In the first quarter of the year, AppLovin Corporation (NASDAQ:APP) expanded its net income by 144 percent to $576 million from $236 million in the same period last year.

Revenues increased by 40 percent to $1.48 billion from $1.058 billion year-on-year.

While we acknowledge the potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.