AppLovin Shares Drop Amid Google's Project Genie Announcement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Stock Decline: AppLovin shares fell 11.7% today in response to concerns over Google's Project Genie, a new prototype from DeepMind that enables users to create AI-driven virtual gaming worlds, triggering a sell-off in gaming stocks.
- Business Transformation: The drop in AppLovin's stock is surprising given that the company sold its game development segment last year and now primarily monetizes through its adtech platform, which could benefit from Project Genie if it opens new ad inventory in mobile gaming.
- Market Pressure: AppLovin's stock is also facing pressure from a broader sell-off in software stocks, trading at a high price-to-sales ratio of 31, which raises concerns about its valuation and may affect investor confidence.
- Earnings Expectations: AppLovin is set to report its fourth-quarter earnings on February 11, with analysts expecting a 17.4% revenue growth to $1.61 billion and adjusted earnings per share to rise from $1.73 to $2.95, which could improve market sentiment if results meet expectations.
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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: 569.240
Low
650.00
Averages
763.44
High
860.00
Current: 569.240
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.
AppLovin Shares Drop Amid Google's Project Genie Announcement
- Stock Decline: AppLovin shares fell 11.7% today in response to concerns over Google's Project Genie, a new prototype from DeepMind that enables users to create AI-driven virtual gaming worlds, triggering a sell-off in gaming stocks.
- Business Transformation: The drop in AppLovin's stock is surprising given that the company sold its game development segment last year and now primarily monetizes through its adtech platform, which could benefit from Project Genie if it opens new ad inventory in mobile gaming.
- Market Pressure: AppLovin's stock is also facing pressure from a broader sell-off in software stocks, trading at a high price-to-sales ratio of 31, which raises concerns about its valuation and may affect investor confidence.
- Earnings Expectations: AppLovin is set to report its fourth-quarter earnings on February 11, with analysts expecting a 17.4% revenue growth to $1.61 billion and adjusted earnings per share to rise from $1.73 to $2.95, which could improve market sentiment if results meet expectations.
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AppLovin Stock Declines by 10%
- Apple's Stock Performance: Apple shares have experienced a decline of 10%.
- Market Reaction: The drop in stock price reflects broader market trends and investor sentiment.
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