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Why AppLovin (APP) Is Tumbling Today

AppLovin (APP) is sinking 11% but well off its lows of the day after two short sellers released negative reports about the firm. The company, which assists app developers with marketing their offerings, had been down 23% this morning.

Separately, investment bank Loop Capital on Feb. 20 meaningfully raised its price target on APP.

What the Short Sellers Said About APP

Fuzzy Panda and Culper Research contended that APP is not honest about the capabilities of its AI ad platform. They also alleged that the company forces users to install apps on their phones in order to increase its revenue.

Loop Capital Was Upbeat on APP Stock

The investment bank raised its price target on APP to $650 from $450. Loop reported that advertisers were pleased with APP, and it thinks that the company’s financial health is strong. It kept a Buy rating on the name.

More Information About APP

Analysts on average expect the firm to generate earnings per share of $8 this year, up from $5.69 in 2024. The mean outlook calls for revenue of $5.8 billion in 2025, up from $4.7 billion in 2024.

The shares are changing hands at a forward price-to-earnings ratio of 54.6 times.

In the last month, the stock is down 9.4%, while it has risen 1% in the last three months. In the last year, it has jumped 472%.

While we acknowledge the potential of APP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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