Wedbush analyst Michael Pachter has maintained their bullish stance on APP stock, giving a Buy rating today.
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Michael Pachter’s rating is based on AppLovin’s strong market position and growth potential. The company is benefiting from a shift in mobile ad spending, particularly driven by changes in Apple’s IDFA which have redirected ad dollars towards mobile games. AppLovin’s AI-powered ad technology, AXON 2.0, significantly enhances ad performance, doubling the number of installs compared to competitors without increasing overall spending, thereby capturing a significant share of the mobile games ad market.
Furthermore, AppLovin’s financial outlook remains robust, with expectations of continued revenue and EBITDA growth. The company’s Software Platform is seeing strong contribution margins, and with potential expansion into ecommerce ads, there is room for additional revenue growth. The analyst also notes that AppLovin’s ability to stay competitive suggests a sustainable advantage, supporting the Buy rating.
According to TipRanks, Pachter is an analyst with an average return of -3.1% and a 44.40% success rate. Pachter covers the Communication Services sector, focusing on stocks such as Electronic Arts, Take-Two, and Doubledown Interactive Co.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $400.00 price target.