AppLovin: Strengthening Axon Adoption and Higher-Quality Ecommerce Clients Support Buy Rating and 50%+ Upside Potential

AppLovin, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason Bazinet from Citi assigned a Buy rating on the stock and has a $820.00 price target.

Jason Bazinet has given his Buy rating due to a combination of factors tied to AppLovin’s improving Axon store metrics and adoption trends. He notes that the number of eCommerce clients using Axon has continued to rise, with a clear week-over-week increase in total customers. A growing share of these clients are also Shopify users, and Axon’s penetration within the Shopify ecosystem has been expanding at a healthy pace, even though overall adoption is still relatively low, leaving ample runway for future growth. The geographic mix is skewed toward the U.S., which he views as a positive given the size and monetization potential of that market.
Furthermore, Bazinet highlights that Axon is increasingly being used by higher‑ranked, more popular eCommerce stores, as evidenced by the recent improvement in average store rankings among top clients. He interprets the combination of rising client count and better-quality customers as a constructive signal for future revenue and profitability. Against this operational backdrop, the projected upside in the share price is substantial, with an expected return in excess of 50%. Taken together, these dynamics underpin his conviction that AppLovin’s fundamentals are strengthening and justify maintaining a Buy rating on the stock.

In another report released yesterday, Needham also upgraded the stock to a Buy with a $700.00 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.