10 AI Stocks Turning Heads on Wall Street

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 17, Needham analyst Bernie McTernan reiterated a “Hold” rating on AppLovin shares. By introducing the initial APP Ecommerce Tracker, the analyst assessed APP’s expansion beyond mobile advertising into ecommerce. After reviewing 2,200 ecommerce websites for the Axon pixel, an AI-powered tracking tool that optimizes ad targeting, the analyst found 297 sites using APP. They reflect common industries such as health & personal care, apparel, and furniture, and notable advertisers such as W, Marine Layer, and Bombas.

APP works across a diverse range of product categories, with over 40% of the websites in the Health & Personal Care sector, while 25% in apparel, footwear, and accessories. The 2,200 websites also include 60 major brands such as Nike, Amazon, and Etsy. The analyst sees strong growth potential for AppLovin, driven by the transition toward in-app advertising (IAA) and the importance of first-party consumer data. Based on these factors, there is significant growth potential in in-app advertising, particularly within casual gaming apps.