AppLovin fell 10% to $454.40 on Monday, sinking to the bottom of the S&P 500 even as rival software names climbed. A Bank of America report indicated its e-commerce advertising growth slowed in June.
AppLovin stock tumbled to the bottom of the S&P 500 on Monday, as industry data suggested that the software company's e-commerce advertising growth is slowing. Shares of the world's largest mobile-app ad platform fell 10% to $454.40, making it one of the worst performers in the index.
Software peers rallied while AppLovin sank
The slide broke sharply from the rest of the sector. Although artificial intelligence stocks were under pressure Monday, many software names traded higher and near the top of the S&P 500. AppLovin's drop stood against Intuit's 7% advance, Salesforce's 5.5% gain, and Workday's 5.4% rise.
Bank of America data flagged slower ad growth
What set the stock apart was a Bank of America report based on third-party data that indicated AppLovin's e-commerce advertising footprint grew more slowly in June, adding about 750 new pixels versus about 950 pixels in May. Some of the more bullish views on the stock have rested on its expansion into e-commerce advertising, and Raymond James in late June began coverage with a Buy rating and a $640 price target.
The report could signal bad news for that thesis, but Bank of America argued it is still too early to extrapolate the trend given the platform has only been broadly available for a short window. According to Barron's, the bank kept a Buy rating and a $705 price target.
A fifth straight losing session
The move extended a losing streak. The stock is set to close lower for a fifth consecutive session and at last check had lost $28.25 billion in market value since the closing bell on July 6, according to Dow Jones Market Data. The shares have declined 32% this year as the market anticipates that AI will disrupt many software offerings, yet they remain up 29% over the past 12 months.
Source: Barron's
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