Nvidia's growth driven by data center revenue, while AppLovin faces short-seller allegations

From Nasdaq: 2025-03-04 11:33:00

Motley Fool analysts discuss why Wall Street is not impressed with Nvidia’s 78% yearly revenue growth and CEO Jensen Huang’s vision for AI. Short-sellers target digital ad seller AppLovin. Learn more by checking out The Motley Fool’s free podcasts and beginner’s guide to investing in stocks. Top 10 stocks to buy are also recommended.

Nvidia reported 78% yearly revenue growth, driven by data center revenue. Large language models are being asked to do more while costs decline. New networking revenue standards are transitioning, affecting revenue. CEO Jensen Huang discusses the future of AI in enterprise, physical robotics, and sovereign AI.

AppLovin, the most successful tech company in 2024, faces allegations from short-sellers. The company’s success is attributed to its innovative technology, Axon 2.0. Allegations include copying Meta’s data, using tricks for downloads, and tracking children. Management responds to allegations, emphasizing explicit user choice in downloads.

Short sellers allege that AppLovin is using Meta’s data and employing tricks for downloads. AppLovin’s CEO refutes these claims, stating that every download results from user choice. The discrepancy raises questions for investors. The short report also claims that Meta could shut down AppLovin, prompting skepticism about the validity of the allegations.

Investors are encouraged to assess the information and not make hasty decisions. The situation between AppLovin and Meta raises questions about the validity of the allegations and potential actions. Analysts emphasize the importance of thorough evaluation before taking any investment action.



Read more at Nasdaq: What Drives Nvidia’s Growth? | Nasdaq