10 Buzzing AI Stocks on Latest News and Ratings

7. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 51

AppLovin Corporation (NASDAQ:APP) operates a leading marketing platform powered by AI technology. On December 17, James Heaney CFA from Jefferies issued a “Buy” rating on AppLovin with a price target of $400.00. Several factors have led to the buy rating, predominantly the company’s market position, and growth potential. The advertising and marketing technology company has demonstrated significant effectiveness across various marketing channels, as evidenced by the company’s ability to secure a significant portion of advertising budgets that largely stem from high spenders. In particular, the company’s share of e-commerce revenue is growing, with its performance nearing that of industry giants such as Google. This revenue is significantly driven by Applovin’s AI-powered technologies, which the company uses for analyzing consumer revenue, enhancing ad relevance, and even boosting e-commerce outcomes.

Furthermore, the analyst has also pointed out significant improvements in the company’s innovative marketing strategies, such as the use of Halo Effects. This has allowed the company to attribute consumer interest back to initial advertisements, boosting brand awareness. The company did experience a slight dip in key shopping events like Black Friday and Cyber Monday, but its absolute spend increased, reflecting strong confidence from top brands. The company also plans to expand its e-commerce platform to more advertisers, with the company’s AI targeting model expected to continue refining its effectiveness.