10 AI Stocks Catching Wall Street’s Attention

8. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 95

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On March 20, Citi analyst Jason Bazinet reiterated a “Buy” rating and $600.00 price target on the stock.

“AppLovin has always used its Ads platform for its own game studios. However, the firm never recognized this internal expense as revenue for the Ads business. When the game studios are sold (due 2H25), we suspect the new owners will continue to use AppLovin’s Ads platform. This could provide a small revenue and Adj EBITDA tailwind in 2H25 and beyond. In our scenario analysis we estimate it could result in ~$75 million of incremental revenue per year (just below our estimate of the 4Q24 eCommerce revenue).”

Analysts have been bullish on AppLovin stock based on its strong growth potential and market resilience. The company responded strongly to bearish reports that claimed that it had misrepresented the benefits of its AI-powered platform, highlighting that its tools are effective. This is evidenced by the continued client usage despite overlaps with several other platforms such as Meta.