Core Viewpoint - AppLovin Corp. is experiencing a significant shift in investor sentiment following a 700% stock surge, with major investment banks downgrading their price targets due to critical reports from short-selling firms [1][2]. Group 1: Stock Performance and Analyst Revisions - AppLovin's stock price target was reduced by Goldman Sachs from $500.00 to $335.00, and UBS Group lowered its target from $630.00 to $450.00 [2]. - The downward revisions in stock expectations are attributed to multiple critical reports from short sellers [3]. Group 2: Legal Challenges - AppLovin is facing a securities class action lawsuit alleging misleading statements regarding its AXON 2.0 digital ad platform and AI technologies [4]. - The lawsuit claims that AppLovin misrepresented its technology's capabilities and engaged in manipulative practices, including exploiting advertising data from Meta Platforms [4][5]. Group 3: Short Seller Allegations - Muddy Waters Research accused AppLovin of violating app store rules by extracting proprietary IDs without user consent and claimed a high churn rate among e-commerce advertisers [3]. - Other firms, such as Fuzzy Panda Research and Culper Research, have also criticized AppLovin's practices, suggesting data theft and revenue fraud [4]. Group 4: Impact of Reports on Stock Price - Following the release of critical reports on February 26, 2025, AppLovin's share price reportedly fell by more than 12% [5].

Core Viewpoint - AppLovin Corporation (APP) is expected to report strong year-over-year growth in earnings and revenues for Q1 2025, with earnings estimated at $1.45, reflecting a 116.4% increase, and revenues projected at $1.38 billion, indicating a 30.2% growth from the previous year [1][12]. Financial Performance - The consensus estimate for Software Platform revenues is $1.05 billion, suggesting a 54.3% year-over-year growth, while Apps revenues are expected to decline by 12.7% to $331.7 million [8]. - Adjusted EBITDA for the Software Platform is estimated at $829.4 million, indicating a 68.6% year-over-year growth, whereas APP's overall adjusted EBITDA is expected to decrease by 16.8% [9]. - In the fourth quarter of 2024, APP reported a 44% year-over-year revenue increase and a 78% year-over-year rise in adjusted EBITDA, showcasing strong operational efficiency [11]. Market Position and Growth - APP's stock has increased by 300% over the past year, significantly outperforming the broader industry, which gained 27% [10]. - The company has a strong earnings surprise history, having surpassed the Zacks Consensus Estimate in all trailing four quarters with an average surprise of 23.5% [3][4]. Strategic Focus - AppLovin continues to leverage its AXON 2.0 technology and expand within the gaming and in-app advertising sectors, positioning itself for sustained growth [11][13]. - Management has guided for $1.4 billion in sales for Q1 2025, slightly above the Zacks Consensus Estimate of $1.37 billion, indicating confidence in continued performance [12]. Investment Outlook - Despite the strong growth trajectory, the absence of a positive Earnings ESP and potential volatility in App revenues suggest a cautious approach for investors [16]. - The company’s consistent earnings beats and leadership in mobile advertising make it an attractive long-term investment option [15][16].

Core Viewpoint - AppLovin Corporation is facing allegations of misleading investors regarding its financial growth and stability, particularly related to its AXON 2.0 digital ad platform and advertising practices [2][4]. Group 1: Allegations and Financial Impact - The class period for the allegations against AppLovin is from May 10, 2023, to March 26, 2025 [2]. - Defendants allegedly provided false information about AppLovin's financial performance and growth, claiming confidence in its new digital ad platform and the use of advanced AI technologies [2]. - Reports emerged on February 26, 2025, indicating that AppLovin was involved in reverse engineering and exploiting advertising data from Meta Platforms, leading to manipulative practices that inflated ad click-through and app download rates [2]. - Following the revelation of these practices, AppLovin's stock price dropped from $377.06 per share on February 25, 2025, to $331.00 per share on February 26, 2025 [2]. Group 2: Legal Proceedings and Shareholder Actions - Shareholders who purchased shares during the class period are encouraged to register for the class action lawsuit, with a deadline of May 5, 2025, to seek lead plaintiff status [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [3]. - The Gross Law Firm, which is leading the class action, aims to protect investors' rights and ensure companies adhere to responsible business practices [4].

Core Viewpoint - A class action securities lawsuit has been filed against AppLovin Corporation, alleging securities fraud that affected investors between May 10, 2023, and March 26, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that AppLovin misled investors regarding its financial growth and stability, particularly through the promotion of its AXON 2.0 digital ad platform and the use of advanced AI technologies [2]. - Allegations include dishonest advertising practices, such as reverse engineering advertising data from Meta Platforms and manipulating ad metrics to inflate performance figures [2]. - Following the revelation of these practices on February 26, 2025, AppLovin's stock price dropped from $377.06 to $331.00 per share [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until May 5, 2025, to request appointment as lead plaintiff in the lawsuit [3]. - Participation in the lawsuit does not require any out-of-pocket costs for class members [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - Wall Street analysts expect AppLovin (APP) to report a significant increase in quarterly earnings and revenues, indicating strong growth potential for the company [1]. Earnings Estimates - Analysts forecast quarterly earnings of $1.45 per share, reflecting a year-over-year increase of 116.4% [1]. - Revenue is anticipated to reach $1.38 billion, showing a 30.2% increase compared to the same quarter last year [1]. - There has been a downward revision of 1.1% in the consensus EPS estimate over the last 30 days, indicating a reassessment by analysts [2]. Revenue Projections - Revenue from the Software Platform is projected to be $1.05 billion, representing a year-over-year increase of 54.3% [5]. - Revenue from Apps is expected to be $331.66 million, indicating a decline of 12.7% year-over-year [5]. - In-App Purchase revenue is estimated at $223.60 million, reflecting a decrease of 13.7% compared to the previous year [5]. - In-App Advertising revenue is projected to be $108.31 million, down 10.2% from the year-ago quarter [6]. Key Metrics - The Average Revenue Per Monthly Active Payer is estimated at $48.32, slightly up from $48 year-over-year [6]. - Segment Adjusted EBITDA for Apps is projected to be $47.20 million, down from $56.75 million in the previous year [6]. - Segment Adjusted EBITDA for the Software Platform is expected to reach $829.36 million, significantly up from $492.02 million year-over-year [7]. Stock Performance - Over the past month, AppLovin shares have increased by 6.7%, contrasting with a -0.5% change in the Zacks S&P 500 composite [7].

Core Viewpoint - A class action securities lawsuit has been filed against AppLovin Corporation, alleging securities fraud that affected investors between May 10, 2023, and March 26, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that AppLovin's management provided misleading information regarding the company's financial growth and stability, particularly related to the launch of its AXON 2.0 digital ad platform and the use of advanced AI technologies [2]. - Allegations include that AppLovin engaged in dishonest advertising practices, such as reverse engineering advertising data from Meta Platforms and manipulating ad metrics to inflate performance figures [2]. - Following the revelation of these practices on February 26, 2025, AppLovin's stock price dropped from $377.06 to $331.00 per share, reflecting a significant loss for investors [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until May 5, 2025, to request appointment as lead plaintiff in the lawsuit [3]. - Participation in the lawsuit does not require any out-of-pocket costs for class members, as compensation may be available without financial obligation [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - A securities class action lawsuit has been filed against AppLovin Corporation for allegedly misleading investors about its financial growth and stability during the Class Period from May 10, 2023, to March 26, 2025 [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of purchasers of AppLovin securities during the specified Class Period [1]. - Investors have until May 5, 2025, to seek appointment as lead plaintiff [2]. Group 2: Allegations Against AppLovin - The complaint claims that AppLovin and its senior management misled investors regarding the launch of its AXON 2.0 digital ad platform and the use of advanced AI technologies [3]. - Reports from analysts Fuzzy Panda and Culper Research accused AppLovin of reverse-engineering advertising data from Meta Platforms and using manipulative practices to inflate ad click-through and app download rates [4]. - Muddy Waters Research later alleged that AppLovin violated terms of service of major platforms like Facebook and Google, which could threaten its revenue growth sustainability [6]. Group 3: Stock Price Impact - Following the negative reports, AppLovin's stock price dropped from $377.06 on February 25, 2025, to $331.00 on February 26, 2025, marking a decline of $46.06 per share or 12% [5]. - On March 27, 2025, the stock fell further by $65.92 per share, or 20%, closing at $261.70 after the allegations from Muddy Waters Research [7].

Core Viewpoint - AppLovin's upcoming Q1 2025 financial results on May 7 are critical for the company's future, given its high valuation and recent scrutiny from short sellers [2][4]. Financial Performance - AppLovin's stock is down over 40% from its 2025 highs but has increased more than 600% in the last three years, indicating a volatile performance [1]. - The company has a high valuation of 20 times sales, nearly valuing it at $100 billion, which reflects sky-high investor expectations [3]. Business Model and Revenue Generation - In 2024, approximately two-thirds of AppLovin's revenue came from advertising, generating over $3 billion in full-year revenue, with a nearly 100% compound annual growth rate since the end of 2020 [5][6]. - AppLovin's revenue model is based on achieving a desired return on advertising spend for its customers, rather than just ad impressions, which may contribute to its significant growth [8][9]. Market Concerns - Short sellers have raised concerns about the authenticity and sustainability of AppLovin's growth, alleging that not all clicks on its ads are genuine and questioning compliance with mobile operating system policies [7][6]. - The combination of high valuation and fear from short sellers creates a potentially volatile situation for the company [4]. Growth Opportunities - AppLovin is expanding into e-commerce, with advertisers reportedly spending at an annualized rate of $1 billion on this initiative, indicating a significant growth opportunity [11]. - The company is also exploring connected-TV (CTV) channels, which could capture a growing share of advertising spend in the coming years [12].

With just one subscription to Beyond the Wall Investing , you can save thousands of dollars a year on equity research reports from banks. You'll keep your finger on the pulse and have access to the latest and highest-quality analysis of this type of information.I initiated my investment coverage of AppLovin Corporation (NASDAQ: APP ) stock here on Seeking Alpha in late November 2024 with a "Hold" rating, advocating for trimming APP ahead of a market weakness, which could "could trigger aHe leads the investi ...

Core Viewpoint - The AppLovin Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company misrepresented its advertising platform and engaged in manipulative practices to inflate its performance metrics [1][4][5]. Group 1: Class Action Lawsuit Details - The class action lawsuit, titled Quiero v. AppLovin Corporation, Inc., is open to purchasers of AppLovin securities from May 10, 2023, to February 25, 2025, with a deadline for lead plaintiff applications set for May 5, 2025 [1][6]. - The lawsuit alleges that AppLovin's executives created a false impression of the effectiveness of their AXON 2.0 digital ad platform and AI technologies, claiming they would enhance ad matching and expand into new markets [4][5]. - On February 26, 2025, reports surfaced alleging that AppLovin was reverse engineering advertising data from Meta Platforms and using manipulative tactics to inflate ad performance metrics, leading to a more than 12% drop in share price [5]. Group 2: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who acquired AppLovin securities during the class period to seek appointment as lead plaintiff, representing the interests of the class [6]. - The lead plaintiff has the authority to select a law firm for litigation, and participation as lead plaintiff does not affect an investor's ability to share in any potential recovery [6]. Group 3: Company Background - AppLovin is a software-based platform designed for advertisers to improve marketing and monetization of content [3]. - Robbins Geller Rudman & Dowd LLP, the law firm representing the plaintiffs, is recognized as a leading firm in securities fraud cases, having recovered $6.6 billion for investors in related class action cases [7].