Failure to make it into the S&P 500 leads to a sharp drop in stock price Is it a good buying opportunity for the "AI Super Bull Stock" AppLovin (APP.US)?

Notice that, perhaps due to the news not being included in the standard Pool Corporation 500 index, the stock of mobile advertising and mobile app technology development company AppLovin (APP.US) has surged far beyond NVIDIA Corporation, the "AI super bull stock," this year, with a drop of nearly 19% last week. But investment bank Loop Capital believes that this drop is a good buying opportunity. Loop Capital analysts Rob Sanderson and Timothy Greaves stated in an investor report on Monday: "We believe that AppLovin will once again be one of the better performing growth stocks in 2025, and the recent weakness may be the best opportunity to increase holdings in this rising cycle." "For a momentum stock that has experienced rapid and significant re-evaluation, we are not surprised by fluctuations from highs." Loop Capital reaffirmed its "buy" rating on AppLovin and raised its target price from $385 to $450. The bank pointed out that AppLovin's core gaming business is growing significantly, with a three-year compound annual growth rate of up to 63%, demonstrating that its stock price is reasonable. In addition to gaming, Loop believes that consumer-facing advertising can also lead to rapid revenue growth. Sanderson said, "The company has been attracting brands that spend at least $10,000 a day on Meta, and are capable of spending similar amounts on AppLovin." "If we cut that number down to just $2 million a year, attracting one customer a day would bring in over $700 million in annual revenue. A more optimistic scenario is attracting 5 customers a day, spending an average of $3 million a year, which would bring in $5.5 billion in annual revenue. Our revised forecast is for revenue of $500 million next year and $1.5 billion in 2026." Loop also believes that it is only a matter of time before AppLovin is included in the standard Pool Corporation 500 index, as its market value has already exceeded one trillion dollars.