10 AI Stocks on Analysts’ Radar Right Now

5. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 51

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On February 3, Omar Dessouky from Bank of America Securities reiterated a “Buy” rating on the stock with a price target of $375.00. Dessouky is bullish on the stock considering Applovin’s evolving role as a new e-commerce advertising program. The company’s commerce program utilizes its AI-driven Axon engine heavily for optimizing ad targeting and delivery. This allows efficient and personalized ad placements based on user behavior and data. In light of this, the analyst considers AppLovin a top pick for the coming year, expecting significant growth and investor interest as it transitions to a broader market audience. Dessouky also anticipates software revenue for the fourth quarter to be slightly above guidance with significant contribution coming from its eCommerce pilot. His valuation approach, considering both core gaming ads business and potential e-commerce contributions, indicates an overvaluation relative to expected EBITDA, further leading to the buy recommendation.