AppLovin is seeing significant growth for its advertising platform, which is just a year old, a Wall Street analyst says. Meanwhile, AppLovin stock is taking a breather after a steep climb.
Jefferies analyst James Heaney on Monday reiterated his buy rating on AppLovin stock and raised his price target to 760 from 615.
On the stock market today, AppLovin stock hit a record high of 657 before pulling back. It ended the regular session Monday down 0.9% to 643.50.
Heaney said he is incrementally more positive about AppLovin's prospects after speaking with an ad agency expert.
AppLovin is already a top three advertising channel for marketing and communications agency Avenue Z, according to Jonathan Snow, president of The Snow Agency, a performance marketing agency owned by Avenue Z.
"Despite APP's ad product being a year old, it already represents 3-5% of Avenue Z's total ad budget, which is ahead of TikTok (3%), Snapchat (1-2%) and Reddit/Pinterest (<1%)," Healy said in a client note after his talk with Snow. "Avenue Z's primary clients are (direct-to-consumer e-commerce) brands that spend the vast majority of their budgets on Meta (~70% of wallet) and Google (~20% of wallet)." AppLovin's software solutions provide advanced tools for mobile app developers to grow their businesses by automating and optimizing the marketing and monetization of their apps. It also is an emerging leader in the mobile advertising market, Heaney said. AppLovin stock is on four IBD lists: IBD 50, Big Cap 20, Leaderboard and Tech Leaders.
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