10 AI Stocks Poised for Big Moves

6. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 95

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On February 27, Jefferies analyst James Heaney CFA reiterated a “Buy” rating on the stock with a price target of $600.00. The analyst has dismissed claims made in recent short reports about AppLovin misrepresenting the benefits of its AI advertising platform, citing them as weak and inaccurate.

He argued how these fraudulent clicks and downloads don’t align with the company’s ability to generate substantial revenue for its clients. AppLovin’s CEO also refuted the claims, highlighting how its e-commerce pilot program has reached a run rate of roughly $1 billion a year of gross advertiser spend in the e-commerce category alone in December. Further supporting the positive outlook is the company’s expansion into sectors beyond ecommerce, such as automotive and healthcare.

Heaney also explained how AppLovin couldn’t be misappropriating META’s advertising data, stating that it would need unauthorized intrusion to do so. The analyst remains optimistic about the company’s growth potential and considers the recent pullback as an opportunity for investment.