Is AppLovin Stock a Bad-News Buy?
When a company faces adversity and there is plenty of bad news around its business, that can seem like a troubling time to invest in it. But if nothing comes of the developments and the company proves to be in fine shape, then it could end up rallying and generating fantastic returns for investors who bought on the dip.
Billionaire investor Warren Buffett has famously said he likes to buy great companies "when they're on the operating table" and facing some temporary challenges. The key thing, of course, is knowing whether a company is in temporary trouble, or if it's facing an existential threat.
One stock that has been in the news for all the wrong reasons of late is AppLovin (NASDAQ: APP), an advertising technology, or adtech, company that has been growing at a feverish pace in recent years. Short-seller reports and concerns about its data collection practices have weighed on the stock. It's down 15% in the past month, and it has fallen 26% from its 52-week high.
Source Fool.com
