10 AI Stocks Trending On Wall Street Right Now

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 11, Citi kept a “Buy” rating on the stock with a $600 price target. The analyst told investors in a research note how the stock has come under significant pressure due to a few bearish reports that claimed that AppLovin has been misrepresenting the benefits of its AI advertising platform. This was augmented by a broader momentum “unwind”, they noted. Even though consensus revenue estimates “are lofty,” the firm is staying encouraged by AppLovin’s recent disclosures that suggest the e-commerce pilot is performing well.

“Based on peer’s revenue growth rates, EBITDA margins and equity values, AppLovin should be worth $550 a share. The prevailing equity value (of $260) suggests the market is ascribing a ~50% likelihood that AppLovin’s equity is worth $0. That strikes us as remarkably high. We suspect this has less to do with the merits of the bears’ claims. More likely, in our view, it stems from AppLovin’s rapid success, opaque business model and investor’s long-held skepticism about AdTech business models.”

-Citi analysts, led by Jason Bazinet, in an investor note.