Oppenheimer Keeps Outperform Rating on AppLovin (APP) After Reports of SEC Probe

AppLovin Corporation (NASDAQ:APP) is one of the 10 Best American AI Stocks to Buy According to Analysts. On October 7, Oppenheimer reaffirmed its Outperform rating on AppLovin Corporation (NASDAQ:APP) with a price target of $740.

This decision comes after reports of the Securities and Exchange Commission (SEC) probing AppLovin Corporation (NASDAQ:APP) over its data-collection practices.

Oppenheimer Keeps Outperform Rating on AppLovin (APP) After Reports of SEC Probe

The SEC is investigating allegations that AppLovin Corporation (NASDAQ:APP) violated service agreements on pushing targeted ads to consumers, according to an October 6 report by Bloomberg that cites people familiar with the matter.

While acknowledging that AppLovin Corporation (NASDAQ:APP) has not been accused of wrongdoing, the report said that the SEC is responding to a whistleblower complaint filed this year and short-seller reports.

Oppenheimer also pointed out that a review of SEC Freedom of Information Act (FOIA) logs showed four more open requests on AppLovin Corporation (NASDAQ:APP) made by Bloomberg.

The research firm noted that this news could cause increased near-term volatility for AppLovin Corporation (NASDAQ:APP). However, Oppenheimer reiterated its long-term bullish thesis while stating that the firm’s outlook for the company is still intact.

AppLovin Corporation (NASDAQ:APP) is an American technology company that offers end-to-end software and AI solutions for businesses of all sizes to reach, monetize, and grow their audiences.

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 AI stock that is more promising than APP and that has a 100x upside potential, check out our report about the cheapest AI stock.

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