In a week of market volatility, the adtech sector was on fire this week after a down week to start April. The recovery is no surprise, as investors got a bit of good news from the Trump administration -- at least relative to what we knew a week ago.
After hitting an all-time high of $525.15 in February, AppLovin Corp.'s (NASDAQ: APP) share price tumbled more than 35% afterward, due to a pending class action lawsuit and to short seller reports.
The S&P 500 (SNPINDEX: ^GSPC) tumbled as much as 19% from its high during the recent stock market rout. The benchmark index rebounded more than 9% on April 9 when President Donald Trump announced a 90-day delay on the reciprocal tariffs he unveiled a week earlier, but it dropped sharply again on April 10 and remains firmly in correction territory at 15% below its record high.
Both APP and PATH are technology companies leveraging artificial intelligence to enhance their platforms. Which one is a better investment?
AppLovin's (APP) recent results have been amazing
The Trade Desk is a high-quality company with strong FCF margins, diverse open web inventory, and a leading position in advertising, rated a strong buy. TTD's main growth segment is CTV advertisement, offering transparency, aligned incentives, and first-party data sharing, bolstered by the Sincera acquisition. Despite high SBC, TTD's long-term growth potential and diversified inventory make it a more attractive investment than AppLovin, which focuses on gaming apps.
April has gotten off to about as bad a start as a month can have in the stock market. The S&P 500 plunged more than 10% in a two-day span following President Donald Trump's announcement of global tariffs, and the Nasdaq Composite has now entered a bear market, down more than 20% in less than two months.
AppLovin has faced significant stock volatility and short-seller allegations, but professional analysts support its strong revenue growth and dismiss the claims as spurious. Management's quick response to short reports and independent investigations indicates transparency and robustness, reinforcing confidence in AppLovin's business model. Analysts from Loop Capital, Jefferies, Citi, and Oppenheimer highlight AppLovin's effective ad platform, increasing customer spend, and potential for substantial stock price recovery.
Zacks.com users have recently been watching AppLovin (APP) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
AppLovin Corp (NASDAQ: APP) chief executive Adam Foroughi says the ad-tech company's proposal to acquire TikTok is significantly stronger than the competing bids.
Shares of digital advertising up-and-comer Applovin (APP -16.20%) plunged 18.2% in March, according to data from S&P Global Market Intelligence.
AppLovin's stock has dropped significantly from its peak due to fears and short attacks. The company excels in AI advertising for mobile games, with ad revenues surging 73% in Q4 2024, and is expanding into e-commerce and connected TV ad markets. AppLovin's efficiency is notable, with a 62% adjusted EBITDA margin and $2.1 billion in free cash flow, before divesting the Apps business.