Needham analyst Bernie McTernan has maintained their neutral stance on APP stock, giving a Hold rating today.
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Bernie McTernan’s rating is based on AppLovin’s promising performance and strategic initiatives. The company showed strong quarterly results, largely driven by increased advertising revenues from both gaming and emerging sectors. This growth is partly attributed to a successful pilot program in new verticals, which suggests a positive trajectory for the company’s expansion efforts.
Additionally, AppLovin is developing a generative AI-enabled self-service platform aimed at bolstering revenue from new areas. The company is also enhancing its reach by aiming to connect with a vast majority of advertisers through its AXON platform, highlighting significant growth potential in its Advertising Business. Meanwhile, the potential sale of its games portfolio is expected to allow the company to concentrate more on its advertising segment, though these transitions warrant a cautious Hold rating until further clarity on these developments is observed.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $470.00 price target.
Based on the recent corporate insider activity of 117 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.