Analyst Matthew Cost of Morgan Stanley maintained a Buy rating on AppLovin, retaining the price target of $750.00.
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Matthew Cost’s rating is based on AppLovin’s impressive performance in the third quarter, where the company reported a 12% quarter-over-quarter growth in ad revenue, surpassing its target. This growth was primarily driven by advancements in gaming, but there is also significant potential in non-gaming sectors, particularly with the launch of the Axon Ads Manager. The introduction of this self-serve ecommerce product on October 1st has shown promising early results, with new advertisers increasing their spending by 50% week-over-week.
Cost believes that the successful launch of the non-gaming self-serve platform, combined with positive customer feedback and minimal operational issues, positions AppLovin for substantial growth. The company’s guidance for the fourth quarter aligns with previous estimates, indicating stability and potential for future earnings revisions. Additionally, new opportunities such as AI-driven ad generation and expansion into web and CTV further enhance AppLovin’s growth prospects, supporting the Buy rating.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $705.00 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.