10 High-Flying AI Stocks on News and Ratings

7. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 51

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On February 13, Matthew Cost from Morgan Stanley maintained a “Hold” rating on the stock with a price target of $470.00, up from $365. The rating follows Applovin’s Q4 beat and the announcement that the company is set to divest its first-party games business in Q2.

In particular, ad revenue, driven by its AI-driven advertising platform and expansion into new markets, is performing well above forecasts. However, the hold rating stems from the structural changes going on in AppLovin, such as its plans to sell its first-party games business and focus more on its ad network. Moreover, there is optimism surrounding non-gaming ad revenue, but the developments are still in the early stages.