App Stock Alert: Apple Sells AppLovin Blow, Sends Shares Down

App Stocks - App Stock Alert: Apple Sells AppLovin Blow, Sends Shares Down

Source: T.Schneider/

Without much ado, the consumer technology juggernaut Apple (NASDAQ:AAPL) has introduced a change to its ad attribution policies. This may impact the mobile advertising specialist AppLovin (NASDAQ:APP), which used the previous framework to support Apple’s analytics directive while respecting online privacy concerns. The potential loss of revenue has caused APP’s stock price to decline, although this may also be an overreaction.

According to Advertising exchanger The report shows that Apple offers two types of ad attribution. One of them is called SKAdNetwork and protects user privacy while facilitating critical analysis; that is, providing information about which ads led to higher engagement or sales. The second is private click measurement and offers the same functionality, but on the Internet.

Apple has released documentation to developers indicating that the tech giant is phasing out the above-mentioned ad attribution program names and replacing them with App AdAttributionKit and Web AdAttributionKit. Both of these entities are part of the broader AdAttributionKit.

What may be troubling for AppLovin stock is that the previous SKAdNetwork represented a messy framework. Behind Advertising exchangerit is “an overly complex tool that does less to protect privacy than to undermine the effectiveness of advertising in the name of privacy.”

The app stock may be struggling, but analysts still love it

As SKAdNetwork may be replaced by another structure, AppLovin may lose its relevance. Not only that, but a large client is involved, causing many investors to rush out. That said, it’s also worth noting that APP stock continues to perform well today.

Since the beginning of the year, the value of the shares has almost doubled. Over the last year, AppLovin shares are up over 240%, which is impressive. Therefore, most social commentary suggests that retail investors believe that volatility is an overreaction.

Notably, Wall Street analysts are overwhelmingly bullish on APP stock, with a consensus rating of “Buy” with an average price target of $95.05. This represents over 23% upside potential from the current price at the time of writing. The overall rating consists of 10 buys and 3 holds.

Finally, the forecasts for the future are very tempting. Market experts predict that earnings per share will reach $3 in fiscal year 2024, an increase of 206% compared to the year-ago result. Ultimately, sales could total $4.37 billion, up 33.1% from the 2023 print of $3.28 billion.

As of the date of publication, Josh Enomoto did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to Publishing guidelines.

Josh Enomoto, former Senior Business Analyst at Sony Electronics, has helped broker large contracts with Fortune Global 500 companies. Over the past few years, he has provided unique, critical insights to the investment markets as well as a variety of other industries including law, management construction and health care. Tweet him at @EnomotoMedia.