Benchmark analyst Mark Zgutowicz last night initiated coverage of AppLovin with a Sell rating and $7 price target. The analyst is cautious on AppLovin’s near-term business fundamentals and long-term competitive positioning and expects "additional meaningful estimate revisions ahead." Near-term, he expects AppLovin’s software platform enterprise client growth to stall meaningfully beginning in the first half of 2023 against difficult compares. Longer term, advertising platforms "without a bedrock" of first-party data, including AppLovin, will see monetization of consumer engagement "steadily decline," contends Zgutowicz.
Published first on TheFly
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