William Blair analyst Ralph Schackart has maintained their bullish stance on APP stock, giving a Buy rating on February 10.
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Forget margin or options. Here's how the pros trade APPRalph Schackart has given his Buy rating due to a combination of factors tied to AppLovin’s strong fundamentals and outlook. He highlights that the company is delivering exceptional revenue growth and profitability at the same time, even as investors worry about AI-related disruption and tougher competition, and he notes that management still expects additional sequential growth in what is usually a softer seasonal period.
Schackart also points to strategic progress and capital allocation as support for his view, including the buildup of a self-service platform that should broaden the advertiser base and improve the model over time, and a sizable share-repurchase program funded entirely by free cash flow. In his assessment, advances in AI and content tools are likely to increase the volume of games, making discovery more challenging and thereby enhancing the value of AppLovin’s ad platform, especially given its focus on casual games and its differentiated audience reach.
In another report released on February 10, Jefferies also maintained a Buy rating on the stock with a $860.00 price target.