AppLovin: Expanding High-Quality Axon Adoption and International eCommerce Traction Support Buy Rating

Analyst Jason Bazinet of Citi maintained a Buy rating on AppLovin, retaining the price target of $820.00.

Jason Bazinet has given his Buy rating due to a combination of factors that point to strengthening fundamentals at AppLovin. He highlights that AppLovin’s Axon platform is gaining traction among eCommerce clients, with a rising number of merchants adopting the solution and a particularly strong overlap with Shopify-based stores. Despite this growth, penetration across the broader Shopify universe remains quite small, suggesting a long runway for further adoption. Bazinet also notes that the customer base is becoming more geographically diversified, as the proportion of U.S. merchants is gradually declining while international uptake increases, even without material marketing spend to promote Axon.

In addition, Bazinet emphasizes that more prominent and higher-traffic eCommerce retailers are starting to use Axon, as reflected in the improving (i.e., lower) average store ranking among Shopify merchants adopting the tool. He interprets this shift toward better-ranked stores as evidence that leading online sellers see value in Axon’s capabilities and are actively testing it. Combined with the company’s projected double-digit potential upside to the current share price, this expanding, higher-quality and more international customer mix supports his positive view. Taken together, these dynamics underpin his conviction that AppLovin’s growth prospects and monetization opportunities justify a Buy recommendation on the stock.

In another report released on December 17, BTIG also maintained a Buy rating on the stock with a $771.00 price target.

Based on the recent corporate insider activity of 105 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.