Wells Fargo says ad checks run counter to AppLovin short report claims

Wells Fargo analyst Alec Bonello says the firm’s checks indicate that AppLovin’s (APP) e-commerce incrementality is “strong,” with agency checks indicating that e-commerce customers are 55%-60% net new to brand, contrary to a short report’s claim of a greater than 50% retargeting mix. The firm, which also notes that Muddy Waters only checked with five customers, argues that churn is explained by the nascent stage of the e-commerce business. Wells keeps an Overweight rating and $538 price target on AppLovin shares.