We recently compiled a list of the 10 Stocks Drop Double Digits as Investor Caution Lingers. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against the other  stocks.

The stock market fell into the negative territory on Thursday, as investor caution lingered over the ongoing trade tensions among some of the world’s largest economies.

The tech-heavy Nasdaq posted the largest loss, down 2.61 percent, followed by the S&P 500 with 1.78 percent, and the Dow Jones with 0.99 percent.

Ten companies mirrored a broader market decline, dropping by as much as double digits during the end of the session. In this article, we named Thursday’s 10 biggest losers and detailed the reasons behind their decline.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.

AppLovin Corporation (NASDAQ:APP)

Shares of AppLovin Corporation (NASDAQ:APP) dived for a third consecutive day on Thursday to finish at $259.63 apiece as more shareholder law firms emerged, encouraging investors who lost their money to lead as plaintiffs in a class action lawsuit.

On Wednesday, Robbins Geller Rudman & Dow LLP said in a statement that it was investigating the company for allegedly exploiting advertising data from Meta Platforms, and using manipulative practices that forced unwanted apps on customers via a “backdoor installation scheme” that inaccurately inflated installation numbers, and, in turn, its profit figures.

Another law firm, Schall Law Firm, on Thursday encouraged investors to participate in the class action lawsuit.

“The company forced unwanted apps on customers using a 'backdoor installation scheme' which artificially inflated installation numbers,” it said.

AppLovin Corporation (NASDAQ:APP), however, has yet to issue a statement on the allegations.

Overall APP ranks 3rd on our list of Thursday's biggest losers. While we acknowledge the potential of APP as an investment, 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 trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

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