AppLovin Shares Plunge 13% Amid New AI Competitor CloudX Launch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy APP?
Source: seekingalpha
AppLovin (APP) shares fell 13% in premarket trading, hitting a 20-day low, reflecting market concerns over the potential impact of new competitor CloudX, which could significantly disrupt the mobile advertising landscape.
The emergence of CloudX, led by CEO Jim Payne, aims to automate tasks traditionally handled by engineers and ad operations teams using large language models, enhancing efficiency in programmatic advertising. Analysts believe that this new competitor could affect AppLovin's market share, prompting a reassessment of its advertising technology strategy.
The launch of CloudX adds pressure on AppLovin as it navigates a competitive landscape. Investors are closely monitoring how AppLovin will respond to this challenge, especially with its upcoming earnings report on February 11, which is crucial for validating its market position.
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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: 375.230
Low
650.00
Averages
763.44
High
860.00
Current: 375.230
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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- Return on Ad Spend: AppLovin delivers a 45% higher return on ad spend (ROAS) than Meta and a 115% higher ROAS than platforms like YouTube and TikTok, indicating the effectiveness of its advertising technology and solidifying its leadership position in the rapidly evolving digital advertising space.
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