Mobile application development company AppLovin may rise more than 700% this year. Piper Sandler sees the stock as a winner in artificial intelligence with more room to operate. The firm initially gave the stock an Overweight rating and a $400 price target, implying shares could rise another 24.5% from Tuesday’s closing price. The company’s online advertising business continues to grow, thanks to its artificial intelligence-powered advertising engine Axon. AppLovin reported in its third-quarter financial report that software platform revenue increased by 66% year-on-year. APP Year-to-date Alpine AppLovin in 2024 “The stock is up (700%) year-to-date and has been driven more recently by multiple expansion than estimate revisions. But we still think the stock can outperform,” analyst James · James Callahan writes. “APP’s estimate revisions have outpaced the Nasdaq every quarter since the first quarter of 2023, and Delta has been improving over the past three quarters.” Callahan said that although AppLovin’s advertising business has been growing The main driver, but the company’s mobile gaming business will also rebound as consumer spending in this area increases. He wrote: “Despite overall market challenges, APP has achieved impressive revenue growth. Today, sales growth compared to pricing drives the majority of revenue growth, which we view as positive as APP accounts for Shares of AppLovin rose 1.9% in pre-market trading on Wednesday after the news, and analysts said it could eventually increase pricing as auctions normalize.
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