10 Buzzing AI Stocks on Latest News and Ratings

4. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 51

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On January 7^th, Piper Sandler analyst James Callahan reiterated an “Overweight” rating on AppLovin Corporation (NASDAQ:APP) with a $400.00 price target. Applovin leverages AI-powered technologies to optimize advertising and enhance user engagement. The company has revamped its AI-powered Axon engine, helping it to enter new verticals like e-commerce. The introduction of Axon 2.0, in particular, has allowed it to improve its real-time ad delivery and targeting capabilities, in turn helping it in serving e-commerce advertisers.

According to Piper Sandler, competitive ad pricing, incremental spend, and the potential for expanding attribution windows are some of the strengths in Applovin’s approach to e-commerce and advertising. Analyzing its e-commerce initiatives, the firm noted a competitive edge in ad pricing in comparison to industry peers as well as an incremental spending pattern by consumers. At the same time, some shortfalls that were noted include room for improving the new E-Commerce product discovery, shorter purchase consideration window than competitors, and older average purchaser age. Regardless of the mixed findings, the firm is optimistic about the e-commerce launch and views opportunities for Applovin to enhance the initial version of its advertising product.