Loop Capital analyst Rob Sanderson maintains $Applovin (APP.US)$ with a buy rating, and maintains the target price at $385.
According to TipRanks data, the analyst has a success rate of 59.6% and a total average return of 14.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Applovin (APP.US)$'s main analysts recently are as follows:
The recent elevation in the valuation of AppLovin can be credited to several favorable developments recorded after their Q3 earnings announcement. These include widened investor engagement, the inclusion of the company's stock in the Nasdaq 100 index, its shift towards an entirely unsecured debt capital structure, and an upgrade to investment grade status by an independent rating agency.
Positive indicators from a pilot of AppLovin's e-commerce product, involving collaborations such as with Snow Agency, have bolstered confidence, leading to a rise in ad revenue projections from FY24 to FY28. Although in its nascent stages, the pilot exhibits a return on ad spend comparable to established standards seen at Meta, and there is anticipation that AppLovin could surpass Alphabet in budget allocations by 2025.
Following discussions with two experts involved in AppLovin's e-commerce pilot, favorable early impressions and metrics were reported from both the agency and direct-to-consumer brand perspectives, matching return on ad spend levels of major competitors. It is believed that recent stock performance coupled with accelerating momentum in e-commerce could foster multiple advantageous cycles for the company, bolstering its business prospects into 2025. AppLovin is considered a prominent selection within its sector.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
