Last year was a fantastic year for the S&P 500, but not all companies in the famous stock market index fared well. The Trade Desk (NASDAQ: TTD), one of the index's newest members, has been in a terrible slump. The stock declined by a whopping 67% in 2025 and kicked off this year by declining another 20%. The Trade Desk is one of the world's leading adtech companies. Its software platform helps match advertisers with their ideal audience for advertising campaigns across digital media. The company has thri ...

Shares of The Trade Desk (NASDAQ: TTD) slumped anew on Tuesday, falling as much as 10.7%. As of 3:13 p.m. ET, the stock was still down 9.6%. The catalyst that sent the adtech specialist swooning was (another) price target cut courtesy of a Wall Street analyst. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Getty Images. Dimming prospects? KeyBanc analyst Justin Patters ...

Core Viewpoint - AppLovin's stock experienced a significant decline in January 2026, dropping 30% due to a combination of short-seller attacks, scrutiny over software valuations, and competitive threats from Google's new AI game creation platform, Project Genie [2][4][6]. Group 1: Stock Performance - AppLovin's stock closed January down 30%, with a notable drop on the last day of the month following the launch of Project Genie [2]. - Despite a strong performance in 2025 where the stock doubled, concerns over valuation and market conditions led to a sell-off in January [4]. - The stock is currently trading at a price-to-sales ratio of 31, indicating high valuation concerns [4]. Group 2: Short-Seller Attacks and Investigations - The stock faced a short-seller attack on January 20, with allegations of the company circumventing anti-money-laundering controls [6]. - AppLovin has previously encountered similar allegations, which have not resulted in lasting impacts, and the company has labeled the claims as "false, misleading, and nonsensical" [6]. - Ongoing reports of an SEC investigation into its data collection practices are contributing to negative sentiment around the stock [5]. Group 3: Future Outlook - The recent sell-off may be misdirected as AppLovin is no longer focused on mobile games after divesting its apps business, and it now monetizes mobile games through adtech [7]. - The impact of Project Genie on the gaming industry remains uncertain, and the market may be overreacting to its launch [7]. - AppLovin is set to report its fourth-quarter earnings on February 11, with analysts expecting a revenue increase of 17% to $1.61 billion and adjusted earnings per share to rise from $1.73 to $2.95, which will be crucial for justifying its high valuation [8].

Core Insights - AppLovin is a significant player in the mobile technology sector, particularly known for its adtech platform that serves the mobile gaming industry [1] - The company has shifted its focus from game development to adtech, competing with major firms like Unity Software and Take-Two Interactive Software [1] Stock Performance - On January 30, 2026, Evercore ISI maintained a "Buy" rating for AppLovin, despite a previous hold recommendation, with the stock priced at $473.11 [2] - The stock experienced an 11.7% decline following the announcement of Google's Project Genie, which has implications for the gaming sector [2][3] - AppLovin's stock currently stands at $473.11, reflecting a 16.89% decrease or a $96.13 drop [3] Market Context - The fluctuations in AppLovin's stock have been part of a broader downturn in software stocks, influenced by the introduction of AI innovations like Project Genie [3] - The stock has seen a trading range with a low of $463.09 and a high of $563.47, and over the past year, it peaked at $745.61 and reached a low of $200.50 [4] - AppLovin's market capitalization is approximately $160 billion, with a trading volume of 12,068,056 shares on the NASDAQ exchange [4]

Core Insights - Meta Platforms has seen a 14% increase in ad impressions and a 10% rise in average ad prices due to heightened advertiser demand driven by improved ad performance [1] - The company is recognized as a leading player in digital advertising, leveraging artificial intelligence to enhance user engagement and advertising conversion rates [2] - Meta owns three of the four most popular social media platforms, collectively reaching 3.5 billion users daily, which strengthens its position in the adtech market [3] Financial Performance - Meta's stock currently trades at $658, with a median target price of $820 from analysts, indicating a potential upside of 25% [4] - The company's earnings are projected to grow at an annual rate of 18% over the next three years, with a current price-to-earnings ratio of 29 [8] Market Trends - The Nasdaq Composite has entered a bull market, with historical trends suggesting a potential 98% increase in the index over the first two years [6][7] - Meta's investments in AI are expected to further enhance ad performance and demand, particularly with plans to automate ad creation and targeting by 2026 [8] Competitive Landscape - Meta's scale and network effects in social media create a competitive advantage, making it the second-largest adtech company [3] - The company is well-positioned to capitalize on the growing demand for digital advertising, especially as it continues to innovate with AI technologies [2][8]

Key Points A senior executive is leaving The Trade Desk, effective immediately. Investors dislike uncertainty, and this move came with a double dose. 10 stocks we like better than The Trade Desk › Shares of The Trade Desk (NASDAQ: TTD) slumped on Monday, falling as much as 8.5%. As of 3:13 p.m. ET, the stock was still down 7.1%. The abrupt departure of a high-ranking executive normally raises eyebrows anyway, but this move was doubly perplexing. Image source: Getty Images. A revolving door In a ...

Core Insights - The mobile adtech firm Liftoff has filed for an IPO in the US, potentially signaling the end of a prolonged IPO drought in the adtech sector [1] - If the IPO market reopens, companies with consistent growth and a focus on performance advertising, particularly those leveraging AI, are expected to lead the way [2] Company Overview - Liftoff offers a software development kit for app developers to sell advertising and utilizes machine learning to help advertisers target high-quality mobile users [3] - The company reported a revenue growth of 30% year-over-year, reaching $491 million for the nine months ending September 30, with adjusted earnings of $263.3 million and a net loss of $25.6 million [3] Market Dynamics - Other mobile adtech companies like InMobi and Moloco are also seen as potential IPO candidates, as the market has consolidated into a few major players [4] - AppLovin has emerged as a leading player with a market cap exceeding $200 billion, influencing other companies in the adtech space [10] Performance Advertising Trends - Consumer spending on mobile apps is projected to grow by 21.6% year-over-year, reaching $155.8 billion by 2025 [12] - Advertisers are increasingly focused on measurable outcomes, employing data-driven strategies to optimize ad performance [14] Industry Challenges and Adaptations - The mobile ad industry faced challenges following Apple's privacy updates in 2021, which limited tracking capabilities [15] - Companies have adapted by investing in first-party data and AI tools, reducing reliance on Apple's tracking identifiers [16] Future Outlook - Recent antitrust rulings against Apple and Google may lead to reduced app store fees, creating a favorable environment for increased mobile ad spending [17] - Cost savings from reduced commissions are expected to be reinvested into user acquisition efforts [18]

Core Insights - AppLovin has shown impressive growth, with a stock increase of 108% over the past year, following a previous surge of over 700% [2][4] - The company has successfully transitioned from a mobile gaming focus to a pure-play adtech company, enhancing its growth potential and simplifying investor analysis [5] - AppLovin's revenue for the first three quarters of the year reached $3.82 billion, a 72% increase, while GAAP net income rose 128% to $2.23 billion, indicating a profit margin of nearly 60% [6] Company Developments - The sale of AppLovin's mobile gaming business to Tripledot Studios for $400 million in cash and 20% equity was a significant strategic move, aligning the company more closely with its adtech business [5] - The company has expanded into new verticals, including e-commerce, which has contributed to its growth momentum in both gaming and non-gaming sectors [7] - AppLovin's Axon AI advertising technology has been a key differentiator in its performance [7] Market Expectations - Expectations for AppLovin in 2026 are high, driven by the success of its adtech business [8] - Despite a high price-to-earnings ratio of 75, the growth trajectory appears justified, with potential for further stock appreciation as long as the ad market remains robust [9] - The company is experiencing rapid growth in Asia and is diversifying its product offerings, positioning itself well for future success [9]

Core Viewpoint - AppLovin Corporation (NASDAQ:APP) is viewed positively by analysts, with bullish ratings and increased price targets indicating strong growth potential in the gaming and advertising sectors [1][2]. Group 1: Analyst Ratings and Price Targets - BTIG analyst Clark Lampen reiterated a Buy rating for AppLovin, raising the price target from $705 to $771, suggesting a potential upside of 22% [1]. - Benchmark & Co. analyst Mike Hickey also maintained a Buy rating, increasing the target price from $700 to $775, highlighting the stock as a "Best Idea" due to its profitability and growth potential [2]. Group 2: Business Strength and Market Trends - Hickey emphasized the fundamental strength of AppLovin, driven by the rise in e-commerce, effective prospecting campaigns, and the impact of Gen AI on creative processes [3]. - The company is focusing on optimal spending for AI infrastructure and plans for international expansion, which are expected to enhance advertiser density [3]. Group 3: Company Overview and Strategic Shift - AppLovin connects advertisers with publishers through an AI-enabled software platform, providing end-to-end solutions for global content monetization [4]. - The company has shifted its focus towards the adtech space for better margins after divesting its mobile gaming segment [4].

Market Overview - The current stock market is the second priciest in history, as indicated by the Shiller Price-to-Earnings (P/E) Ratio, only surpassed before the dot-com bubble burst [3] - Major indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have seen significant gains in 2025, rising by 14%, 17%, and 22% respectively [5][6] Investment Strategy - The company is adopting a multi-pronged investment strategy to navigate a historically expensive market, focusing on long-term positions and avoiding impulsive trades [2][5] - There is an emphasis on maintaining core positions while increasing cash reserves to capitalize on future market dislocations [10][13] Stock Selection - The company is selectively adding to positions in firms like PubMatic and Goodyear Tire & Rubber, which are seen as undervalued despite current market conditions [17][18] - High-yield dividend stocks are being incorporated into the portfolio, as they have historically provided better returns and lower volatility compared to non-dividend payers [20][23] Risk Management - The company is divesting from non-core holdings that no longer align with investment goals, similar to corporate cost-saving initiatives [11][12] - The potential for an AI and quantum computing bubble is acknowledged, but core positions are not expected to be disproportionately affected [8]