**AppLovin Stock Reaction and Earnings Outlook**
Shares of AppLovin (NASDAQ: APP) rose 2.7% today following a rebound from last week’s sell-off. The stock increased after short-seller CapitalWatch retracted claims of money laundering against the company. AppLovin is set to announce its fourth-quarter earnings report tomorrow, with analysts expecting revenue of $1.61 billion, a 48.1% increase year-over-year, and adjusted earnings per share to grow from $2.07 to $3.07.
UBS has lowered its price target for AppLovin from $840 to $686 but maintained a buy rating, citing strong return on ad spend driven by its Axon AI engine. Similarly, Jefferies reiterated a buy rating with a price target of $860, indicating that previous concerns over the stock were overblown. With strong activity reported in the digital advertising sector, particularly from competitors like Alphabet and Meta Platforms, the outlook ahead for AppLovin appears promising.
