Why AppLovin Stock Was Taking a Dive Today

Group 1 - AppLovin shares declined by 11.7% following the announcement of Google's Project Genie, which allows users to create AI-driven virtual gaming worlds, leading to a sell-off in gaming stocks including Unity Software, Take-Two Interactive, and Roblox [1][2] - Despite the sell-off, AppLovin is no longer a game developer as it sold that segment of its business last year, focusing instead on its adtech platform [4] - The impact of Project Genie on the mobile gaming industry remains uncertain, but it could potentially benefit AppLovin by creating new advertising opportunities within mobile gaming [5] Group 2 - AppLovin's stock may also be under pressure from a broader decline in software stocks, with the company trading at a high price-to-sales ratio of 31 even after the recent drop [6] - The company is set to report its fourth-quarter earnings on February 11, with analysts projecting a revenue increase of 17.4% to $1.61 billion and adjusted earnings per share rising from $1.73 to $2.95 [7]