
AppLovin Corp (APP) Stock Forecast & Price Target
AppLovin Corp (APP) Analyst Ratings
Bulls say
AppLovin has demonstrated significant growth in advertising revenue, achieving year-over-year increases of 17.5% and 19.7% in the third and fourth quarters, respectively, fueled by enhancements in its ad optimization models and new revenue verticals. The company's adjusted EBITDA also saw a substantial 78% year-over-year increase, highlighting its core business momentum and improved cost efficiencies. Additionally, the introduction of Axon 2, which optimizes ad placements and facilitates growth in both gaming and non-gaming markets, positions AppLovin to capitalize on macroeconomic recovery trends in advertising spend, further solidifying its competitive edge in the advertising technology space.
Bears say
The financial outlook for AppLovin appears negative due to its heavy reliance on the advertising spend within the mobile gaming sector, which is facing a slowdown, potentially leading to decreased revenue from the demand-side platform, AppDiscovery. The risk of stagnation in advertising dollars directed towards mobile game users raises concerns about market value expansion, potentially resulting in revenue compression as opportunities remain constrained to in-game advertising. Furthermore, AppLovin's dependence on its proprietary AI technologies, such as Axon 2, introduces a vulnerability to rapid industry changes, while its acquisition-driven growth strategy may lead to operational inefficiencies and increased costs if not managed effectively.
This aggregate rating is based on analysts' research of AppLovin Corp and is not a guaranteed prediction by Public.com or investment advice.
AppLovin Corp (APP) Analyst Forecast & Price Prediction
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