Jefferies Adjusts Price Target on AppLovin to $375 From $550

San Diego County sued AppLovin (APP), alleging improper data collection and ad targeting in children's games, violating child privacy rules. The complaint claims AppLovin failed to obtain parental consent before tracking under-13 users. The lawsuit highlights risks related to tightening privacy rules and potential compliance costs for AppLovin's AI-powered ad tools.

A San Francisco judge denied AppLovin's request to halt Unity's Ad Quality SDK, sending the case to arbitration. AppLovin alleges Unity's tool collects its proprietary ad auction data, violating contracts and misappropriating trade secrets. AppLovin shares fell over 5% on the news, while Unity's stock showed no significant reaction. The dispute highlights tensions between the two mobile gaming infrastructure companies.

AppLovin (APP) faces a securities fraud lawsuit, impacting investor confidence. The stock is down 55% over the past year. Analysts argue the company is undervalued, with a fair value estimate of $507, citing strong revenue and earnings. However, risks include regulatory scrutiny and adoption of its ad platform by non-gaming advertisers.

San Diego County sued AppLovin, alleging its software served adult ads in children's games and removed a feature to flag child users. The complaint claims AppLovin's SDK, present in 73% of top mobile games, violates California's False Advertising Law and Unfair Competition Law. The county seeks restitution and penalties, citing coercive ad practices and data collection without parental consent.

AppLovin (NasdaqGS:APP) faces a securities fraud class action lawsuit over alleged misstatements regarding its AI-driven ad model and delays in launching a generative AI video tool, which reportedly impacted revenue and product development. The lawsuit highlights the company's reliance on timely AI execution, as delays can affect model performance and advertiser confidence. Analysts project $13.2B revenue and $8.6B earnings by 2029, with a potential 76% upside to its current price.

San Diego County sued AppLovin, alleging its ad system showed sexual and violent ads to children and collected their data despite protections. The complaint seeks injunction, restitution, and penalties, citing tests that found inappropriate ads in children's games. AppLovin denies knowingly serving ads to children and states its policies prohibit such content.