AppLovin Shares Drop After Edgewater Research Cites Stalled Growth; Trade Desk, Magnite Also Decline
AppLovin (NASDAQ:APP) fell nearly 5% after analyst Joe Wittine from Edgewater Research warned that the company's market-share growth has stalled. The firm projected only modest sequential revenue growth in Q4 as AppLovin’s MAX platform nears a functional ceiling, raising concerns about slowing expansion and potential margin pressures due to increased competition. Citi data showed some positive momentum for AppLovin, with its e-commerce client count reaching 13,105 and growing by 5% week-over-week—the fastest pace in five months. This suggests continued growth beyond mobile gaming could still offer upside despite Edgewater’s cautionary outlook. Meanwhile, The Trade Desk (NASDAQ:TTD) dropped 3%, while Magnite (NASDAQ:MGNI) fell about 1.5%. Both stocks are under pressure from broader ad-tech sector challenges but face different issues than AppLovin's market saturation concerns.
Topics: ad-tech sector AppLovin Edgewater Research Magnite The Trade Desk