Key Stats for AppLovin Stock
- Price Change: -6.3%
- Current Price: $569
- Advanced Model Price Target: $1,007
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What Happened?
Shares of AppLovin (APP) fell 6.3% on Friday, closing at $569 as the recent software sell-off accelerated.
The stock has now plummeted 22% in the last month as investors aggressively rotate capital out of software and into hardware stocks like Nvidia (NVDA).
The prevailing fear is that Generative AI will commoditize ad-tech software, leading the market to dump AppLovin in favor of the chipmakers building the AI infrastructure.
Consequently, AppLovin sits at a dangerous technical level, leaving retail investors asking if this is a golden buying opportunity or a “value trap.”
Is AppLovin Undervalued Today?
While the market panics about AI competition, TIKR’s data suggests investors are ignoring the massive success of AppLovin’s new e-commerce expansion.CEO Adam Foroughi revealed in the recent investor conference that the initial results from their e-commerce pilot were “universally phenomenal,” delivering 40% new customers to advertisers.
According to TIKR’s Advanced Valuation Model, the “AI panic” has created a massive dislocation between price and value.
- Implied Fair Value: $1,007
- Current Price: $569
- Potential Upside: +77.1%
The model assumes AppLovin can maintain a 28.4% revenue CAGR as its AXON engine proves it can scale beyond gaming into the massive e-commerce market.
If the company proves that its AI tools actually enhance ad performance rather than suffer from them, a rebound toward $1,000 is the mathematical expectation.
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How Much Upside Does AppLovin Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
