Zhito Finance APP learned that the investment company Jefferies Financial held a meeting with executives last week, $Applovin (APP.US)$ after which it stated that AppLovin continues to provide long-term opportunities for investors. Jefferies Financial reiterated its "Buy" rating for the stock, with a Target Price of $600, which is double the current stock price.

Analyst James Heaney from Jefferies Financial stated in a report: "For AppLovin customers, the main proof point is the additional revenue from platform advertising, which is realized within AppLovin's relatively short conversion window. The fact is, if over $10 billion in advertising spending on the AppLovin platform did not convert into attributable revenue for customers, those customers would quickly leave AppLovin or disappear altogether. However, neither of these situations occurred, and AppLovin's advertising revenue grew by 75% in 2024."

AppLovin's stock price rose over 8% in the past week to $292.89, rebounding from a significant drop over the previous three weeks. The company, headquartered in Palo Alto, California, provides a software platform to enhance advertisers' digital marketing and monetization. It is also expanding into E-Commerce and connected television.

Jefferies Financial pointed out that spending by E-Commerce advertising clients on AppLovin will increase in 2025, driven mainly by two factors: improved advertising targeting efficiency and recruiting more online advertisers.

Heaney stated: "AppLovin emphasizes that 80% of its pilot E-Commerce advertisers successfully expanded their Business, with the goal of addressing the remaining 20% of clients before opening self-service to all advertisers. We expect advertiser growth to be slower in the first half of 2025, as access for advertisers still needs to be completed manually, and the 2025 holidays are likely to be a turning point."

However, Seeking ALPHA Analyst Deep Value Investing recently downgraded AppLovin to a "Strong Sell".

Deep Value Investing pointed out: "I expect AppLovin's stock price to continue to decline, possibly testing a Resistance level around $100, even though there are no significant changes in the company's internal operations. I believe that during a market downturn, AppLovin's premium valuation is unsustainable. Compared to lower-cost competitors, paying 39 times the operating Cash / Money Market is unreasonable." $Unity Software (U.US)$

Editor/rice