AppLovin: Axon-Driven eCommerce Adoption and Higher-Quality Shopify Clients Support >40% Upside and Buy Rating

Citi analyst Jason Bazinet maintained a Buy rating on AppLovin yesterday and set a price target of $820.00.

Jason Bazinet has given his Buy rating due to a combination of factors tied to AppLovin’s Axon-driven eCommerce momentum and improving customer quality. He notes that the number of eCommerce clients using Axon has risen meaningfully over a short period, and that Axon’s penetration among Shopify merchants is growing at a double‑digit pace month over month, even though its overall share of the Shopify universe remains relatively small. Bazinet interprets this combination of rapid adoption off a low base as providing substantial runway for further expansion. He also highlights that a greater share of Axon’s Shopify clients are now U.S.-based, which he views as favorable given the depth and monetization potential of that market.
In addition, Bazinet emphasizes that the average traffic ranking of the most prominent Axon‑Shopify merchants has improved to its best level in roughly ten weeks, signaling that increasingly popular and higher‑quality eCommerce operators are choosing AppLovin’s technology. He considers this shift toward more influential customers to be a positive leading indicator for revenue growth and platform durability. Although he acknowledges that a negative third‑party report could weigh on sentiment in the short term, he believes the underlying operational trends are sufficiently strong to outweigh transient headline risk. Taken together with an implied upside of more than 40% to his target price, these adoption and mix dynamics underpin his Buy recommendation on APP.

In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $800.00 price target.

Based on the recent corporate insider activity of 103 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.