Why AppLovin Stock Is Plummeting Today
AppLovin (NASDAQ: APP) stock is sinking in Tuesday's trading. The company's share price was down 9.6% as of 12:45 p.m. ET, against the backdrop of a 0.8% decline for the S 500 (SNPINDEX: ^GSPC) and a 1.5% decline for the Nasdaq Composite (NASDAQINDEX: ^IXIC).
In addition to bearish momentum for the broader market, AppLovin is seeing a pullback in conjunction with new coverage from Bank of America. The investment giant's lead analyst on the stock suggested that revenue from gaming apps is likely to come in below expectations in the fourth quarter.
Before the market opened today, BofA analyst Omar Dessouky published new coverage on AppLovin stock. Using in-app-purchase (IAP) tracking of more than 500 mobile games from SensorTower, Dessouky estimates that the company's apps revenue will actually decline 4% on a sequential quarterly basis. Meanwhile, the average Wall Street estimate is calling for category sales to increase roughly 2% on a sequential basis. With this dynamic in mind, the analyst cautions that investors could get an unwanted surprise with AppLovin's fourth-quarter report.
Source Fool.com
