Why AppLovin Stock Is Sinking Today

Group 1 - AppLovin's stock is experiencing significant sell-offs, with a decline of 5.9% as of 1:15 p.m. ET, and had previously dropped as much as 14.8% during the session [1][2] - The broader market sell-off is attributed to unexpected U.S. GDP contraction of 0.3% year over year, which fell short of the expected growth of 0.3% [3][4] - Consumer spending growth has slowed to 1.8%, down from 4% in the same quarter last year, raising investor concerns [4] Group 2 - Edgewater Research has updated its sales targets for AppLovin, forecasting a substantial deceleration in growth throughout the year, despite a projected 55% year-over-year revenue increase to $1.08 billion for the first quarter [5][6] - The firm has set a sales target of$5.7 billion for 2025, anticipating only 18% annual revenue growth, citing signs of slowing growth in the mobile gaming market and increased competition from Meta Platforms and Alphabet [6] - AppLovin is currently valued at over 16 times the average analyst sales target for the year, with a previous annual sales growth of 43%, but may face further declines if Edgewater's growth forecast proves accurate [7]