We recently published a list of 10 Firms Suffer Amid Optimistic Market Environment. In this article, we are going to take a look at where AppLovin Corp. (NASDAQ:APP) stands against other firms that suffer amid optimistic market environment.
Wall Street’s main indices recovered losses on Friday, as investors repositioned portfolios while digesting the ongoing trade tensions between the world’s two largest economies.
After a battering this week, the Nasdaq finished the day up 2.06 percent; the S&P 500 rose 1.81 percent; and the Dow Jones grew 1.56 percent.
Ten companies, on the other hand, defied a wider market optimism, recording modest losses during the day. In this article, we have listed Friday’s worst performers and detailed the reasons behind their declines.
To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume.
A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.
AppLovin Corp. (NASDAQ:APP)
AppLovin dropped for a second day on Friday, shedding 5.26 percent to end at $249.95 apiece as investors sold off following a shareholder law firm’s announcement urging shareholders to join a class action lawsuit against the company.
On Thursday, law firm Levi & Korsinsky urged shareholders who lost money between May 10, 2023, and February 25, 2025, from their investments in APP to join the lawsuit alleging APP of reporting dishonest advertising practices.
“According to the complaint, defendants provided investors with material information concerning AppLovin’s financial growth and stability…Moreover, defendants publicly reported impressive financial results, outlooks, and guidance to investors, all while using dishonest advertising practices,” the law firm said.
“The truth emerged on February 26, 2025, when analyst research reports emerged stating that AppLovin was reverse engineering and exploiting advertising data from Meta Platforms. The reports further alleged AppLovin was utilizing manipulative practices to artificially inflate their own ad click-through and app download rates, such as by having ads click on themselves or utilizing design gimmicks to trigger forced shadow downloads, erroneously inflating installation numbers and, in turn, its profit figures,” it claimed.
APP, however, reassured investors of best practices, adding that it hired a law firm to investigate the allegations.
Overall, APP ranks 3rd on our list of firms that suffer amid optimistic market environment. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
