AppLovin (APP) stock is rising after investment bank Benchmark defended the company from negative reports against it by two short-sellers. APP assists app developers with marketing their offerings.

Benchmark Denigrates the Short Sellers' Reports

"We think the short reports against AppLovin (by Fuzzy Panda and Culper Research) are based on speculation, mischaracterization, and misinformation,” Benchmark stated. AppLovin follows regulations while creating "real advertising value" for its customers and delivering "financial transparency," according to Benchmark. Additionally, APP does not use "deceptive tactics," but is innovative and delivers "value" for advertisers.

Benchmark accused Fuzzy Panda and Culper Research of being interested in profiting on downturns in APP stock.

Additionally, APP does not seek to obtain fraudulent clicks, according to Benchmark, which kept a $525 price target and a Buy rating on the shares.

More Information About APP Stock

Analysts on average expect APP's earnings per share to come in at $8 this year, up from $5.69 last year.

The shares have a forward price-to-earnings ratio of 47.2 times.

In the last month, the shares have fallen 6% while they have risen 1% in the last three months. So far in 2025, they are up 6.2%.

While we acknowledge the potential of APP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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