12 AI Stocks Making Headlines: Latest News and Ratings

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5. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 95

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On March 5th, Arete analyst David Mak downgraded the stock to “Sell” from Neutral with a $200 price target. According to the firm, there are risks to AppLovin’s ecommerce growth story. The company is “failing to provide compelling” return on ad spend at scale across typically low quality, long-tail mobile gaming ad inventory. The firm’s prior bull case has been priced into the stock, and consensus estimates “now appear too high on any reasonable view”.

Besides the sell rating from Arete, AppLovin has also recently been the subject of claims from short seller reports alleging how the company has been misrepresenting the benefits of its AI advertising platform. CEO Adam Foroughi has since refuted these claims, and several analyst firms have also backed the company platform stating that it complies with App Store and Google Play policies, and that its business model is focused on genuine user engagement rather than artificial metrics. AppLovin is also being audited by a Big Four firm, reflecting on its high standards of financial reporting.

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