AppLovin Shares Drop Amid Competition from CloudX
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy APP?
Source: moomoo
AppLovin Corp (APP) shares fell 4.02% and hit a 20-day low, reflecting investor concerns over the competitive threat posed by the new AI startup CloudX, which aims to disrupt the mobile advertising landscape.
The significant decline in AppLovin's stock is attributed to the emergence of CloudX, which could potentially impact AppLovin's market share in mobile advertising. Analysts have noted that the launch of CloudX's solutions raises worries about AppLovin's ability to maintain its dominance, despite the company's strong financial performance in previous quarters.
As AppLovin prepares to report its fourth-quarter earnings on February 11, investors are closely monitoring the situation, weighing the potential impact of CloudX against AppLovin's robust fundamentals, which include a 72% increase in sales in Q1 2025.
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Analyst Views on APP
Wall Street analysts forecast APP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APP is 763.44 USD with a low forecast of 650.00 USD and a high forecast of 860.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 406.720
Low
650.00
Averages
763.44
High
860.00
Current: 406.720
Low
650.00
Averages
763.44
High
860.00
About APP
AppLovin Corporation is a marketing platform. The Company provides end-to-end software and artificial intelligence (AI) solutions for businesses to reach, monetize and grow their global audiences. Its advertising solutions include a comprehensive suite of tools including AppDiscovery, MAX, Adjust, Wurl and Axon Ads Manager. AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is its monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publisher’s advertising inventory by running a real-time competitive auction, driving more competition, and higher returns for publishers. Adjust is its measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing and drive more informed results. Wurl is its connected TV (CTV) platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Report Revision: Despite retracting the allegations against Tang, CapitalWatch stated that its stance on AppLovin's financials remains unchanged, indicating ongoing scrutiny of the company and its operations in the market.
- Legal Threat Context: AppLovin issued a cease and desist letter two weeks prior, demanding CapitalWatch retract its 'defamatory and baseless' report, highlighting the company's commitment to protecting its reputation through legal channels.
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- Report Revision: Despite retracting the allegations against Tang, CapitalWatch stated that its stance on AppLovin's financials remains unchanged, indicating ongoing scrutiny of the company and its operations in the market.
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- Significant Stock Performance: Since going public in April 2021 at around $65 per share, AppLovin's stock has surged to over $450, with a remarkable increase of over 713% in 2024, reflecting strong market confidence in its business model and growth potential.
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- Clear Transaction Terms: Under the terms of the all-stock transaction, Valaris shareholders will receive 15.235 shares of Transocean stock for each Valaris share, which may attract more investor interest in Valaris's future performance.
- Mixed Market Performance: U.S. stocks were mixed on Monday, with the Nasdaq gaining around 100 points, showcasing strong performance in tech stocks amidst volatility in other sectors, reflecting the complexity of market sentiment.
- Investor Focus: The acquisition news surrounding Valaris has sparked widespread market attention, potentially influencing the stock prices of other related companies, prompting investors to closely monitor subsequent market reactions and industry developments.
See More
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- AppLovin Investment Outlook: AppLovin's Axon ad engine leverages AI to match advertiser demand with publisher supply, with adjusted earnings expected to grow at 48% annually over the next three years; the current P/E ratio of 51 times appears reasonable, and analysts' target price of $771 per share implies an 89% upside.
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