Oppenheimer Keeps Outperform Rating on AppLovin (APP) After Reports of SEC Probe

AppLovin Corporation (NASDAQ:APP) is one of the 10 Best American AI Stocks to Buy According to Analysts. On October 7, Oppenheimer reaffirmed its Outperform rating on AppLovin Corporation (NASDAQ:APP) with a price target of $740.

This decision comes after reports of the Securities and Exchange Commission (SEC) probing AppLovin Corporation (NASDAQ:APP) over its data-collection practices.

The SEC is investigating allegations that AppLovin Corporation (NASDAQ:APP) violated service agreements on pushing targeted ads to consumers, according to an October 6 report by Bloomberg that cites people familiar with the matter.

While acknowledging that AppLovin Corporation (NASDAQ:APP) has not been accused of wrongdoing, the report said that the SEC is responding to a whistleblower complaint filed this year and short-seller reports.

Oppenheimer also pointed out that a review of SEC Freedom of Information Act (FOIA) logs showed four more open requests on AppLovin Corporation (NASDAQ:APP) made by Bloomberg.

The research firm noted that this news could cause increased near-term volatility for AppLovin Corporation (NASDAQ:APP). However, Oppenheimer reiterated its long-term bullish thesis while stating that the firm’s outlook for the company is still intact.

AppLovin Corporation (NASDAQ:APP) is an American technology company that offers end-to-end software and AI solutions for businesses of all sizes to reach, monetize, and grow their audiences.

While we acknowledge the potential of APP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.