William Blair analyst Ralph Schackart has maintained their bullish stance on APP stock, giving a Buy rating on May 5.
Ralph Schackart has given his Buy rating due to a combination of factors that highlight AppLovin’s strategic positioning and growth potential. The company’s advancements in non-gaming advertisements, powered by machine learning and AI, have shown strong performance, particularly in e-commerce and web advertising. This expansion into broader categories is expected to fuel growth for non-gaming advertisers, while the core gaming advertising segment still holds significant growth potential.
Additionally, AppLovin’s upcoming launch of a self-service platform in the second quarter of 2025 is anticipated to unlock substantial advertising budgets, with a high demand from customers eager to use the platform. Furthermore, the company’s transition to a pure-play digital advertising business, following the sale of its gaming assets, positions it as a high-margin entity with impressive revenue growth. These factors combined with the potential partnership with TikTok, despite being a long shot, contribute to Schackart’s optimistic outlook on AppLovin’s stock.
In another report released on May 5, Loop Capital Markets also reiterated a Buy rating on the stock with a $650.00 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.