10 AI Stocks to Keep on Your Radar

7. 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 14, Jefferies reiterated a “Buy” rating and $600 price target on shares. The rating, issued after meetings with AppLovin’s management, reflects optimism about the company’s long-term opportunity. The analyst also told investors in a research note that it is positive about the near-term steps the company is taking to build “a multibillion-dollar e-commerce ad business.” Customers are experiencing positive returns and spending on AppLovin is “the ultimate proof point”, the firm said.

“The main proof-point for AppLovin customers is the incremental revenue derived from advertising on the platform, attributable to APP during its relatively short conversion window. The fact is, if the $10B+ of gross ad spend on APP wasn’t converting to attributable revenue for its customers, those customers would quickly move away from APP or cease to exist. Neither of those are happening, with APP ad revs up 75% in 2024.”

-Jefferies analysts, led by James Heaney, in an investor note.