AppLovin defends AI strategy following short seller reports, analysts remain positive on APP
From Yahoo Finance: 2025-04-04 23:08:00
- A study presented at a European Central Bank conference reveals that companies adopting AI early in manufacturing saw productivity drop initially. However, over time, these firms outperformed in sales, productivity, and employment. This challenges the belief that AI immediately boosts productivity, showing long-term benefits instead.
- OpenAI secures $40 billion in funding from SoftBank Group, valuing the company at $300 billion. The investment is conditional on OpenAI transitioning to a for-profit model by year-end. Failure to do so will reduce the investment to $20 billion, nearly doubling the AI startup’s valuation.
- AppLovin Corporation (NASDAQ:APP) faces scrutiny after short seller reports question the representation of its AI platform. Claims about data ingestion from rivals and high customer churn rates are deemed not credible by analysts. Despite concerns, Citi maintains a "Buy" rating on APP with a $600 price target.
- AppLovin ranks 8th in AI news updates and ratings, showing potential for investment. While promising, other AI stocks may offer higher returns in a shorter timeframe. For a more lucrative option trading at less than 5 times earnings, explore the report on the cheapest AI stock.
Read more: AppLovin (APP) Defends AI Strategy After Short Seller Reports Spark De-Platforming Fears