In a report released today, James Heaney CFA from Jefferies reiterated a Buy rating on AppLovin (APP – Research Report), with a price target of $600.00.
James Heaney CFA has given his Buy rating due to a combination of factors, primarily dismissing the claims made in recent short reports as weak and inaccurate. Heaney argues that allegations of fraudulent clicks and downloads do not align with AppLovin’s ability to generate substantial revenue for its clients, which is a key indicator of the company’s success. The company’s impressive $1 billion e-commerce gross revenue run-rate with just 600 customers and its expansion into sectors beyond e-commerce, such as automotive and healthcare, further support the positive outlook.
Additionally, Heaney refutes claims that AppLovin is misappropriating META’s advertising data, suggesting that such access would be implausible without unauthorized intrusion. He also highlights the concept of “Halo Effects,” where ad exposure can boost revenue and web traffic beyond standard attribution periods. Despite acknowledging that misleading ad creatives are a broader industry issue, Heaney remains optimistic about AppLovin’s growth potential and views the recent stock pullback as an opportunity for investment.
In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $560.00 price target.
Based on the recent corporate insider activity of 114 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APP in relation to earlier this year.