Analyst Paul Chew of Phillip Securities maintained a Buy rating on AppLovin, with a price target of $750.00.
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Paul Chew’s rating is based on AppLovin’s impressive financial performance and strategic enhancements. The company’s revenue and profitability have shown significant growth, with a 68% year-over-year increase in revenue and a 93% rise in net income, primarily driven by the core gaming segment. This robust performance is attributed to improvements in their advertising model and cost optimization efforts, which have led to a substantial increase in adjusted EBITDA.
Furthermore, AppLovin’s advertising business has demonstrated continued strength, supported by enhancements in AI-driven targeting and expansion beyond gaming into e-commerce and direct-response advertising. These strategic moves have diversified the company’s revenue streams and solidified its advertising foundation. The company’s success-fee model also contributes to revenue growth with minimal cost increases, enhancing overall profitability. These factors collectively justify Paul Chew’s Buy rating for AppLovin’s stock.
In another report released on November 7, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $694.00 price target.
Based on the recent corporate insider activity of 119 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.