Mag7 and Beyond: Top 10 AI News Updates and Ratings

8. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 95

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. Recently, the company fell victim to a few short seller reports that claimed that AppLovin has been misrepresenting its AI platform. Discussing this issue, investment firm Citi noted how they claimed that AppLovin ingests data from social media rivals and e-commerce platforms, using it to create a persistent identity graph of the user.

This may impact Apple’s policies and lead to AppLovin being de-platformed, it said. Moreover, the reports also claimed that 23% of e-commerce pilot customers churned during Q1. According to Citi, both these claims are not “particularly credible.” The analysts told investors in a research note that these claims focus on AppLovin’s “much smaller” e-commerce business. Moreover, the use of social media pixels does not constitute fingerprinting. The firm also mentioned how the two claims seem to contradict each other. If the company is ingesting data to have an edge over rivals, it is unlikely that customers would churn at such high rates. The firm kept a “Buy” rating on the shares with a $600 price target.