AppLovin Stock Crashed Over 89% After EarningsAppLovin stock (NASDAQ: NASDAQ:APP ) price retreated by over 89% after the technology giant published its financial results and maintained a positive outlook despite the rising fears of AI disruption.
AppLovin growth accelerated
AppLovin, a top software in the advertising industry, has come under pressure in the past few months, moving from a record high of $744.60 to the current $366.
Its crash coincided with the ongoing sell-off of other software companies, including popular names like ServiceNow, Intuit, Adobe, and Microsoft. These companies have plunged as investors remained concerned about disruption by artificial intelligence (AI) tools.
However, analysts and many experts in the industry believe that the fears are overblown as these companies will always continue being used. For example, firms will continue using its advertising products, which are widely used by advertisers and brands. In a statement, Adam Foroughi, the CEO, said:
“There’s a real disconnect between market sentiment and the reality of our business. The bearish view assumes that if AI makes games easier to build, the value of our ecosystem declines. Well, we believe the exact opposite.”
Analyst Summary
According to 18 analysts, the average rating for NASDAQ:APP stock is "Strong Buy." The 12-month stock price target is $705.17, which is an increase of 92.19% from the latest price.
