10 Trending AI News Updates on Investors’ Radar

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 19, Citi raised the firm’s price target on the stock to $600 from $460 and kept a “Buy” rating on the shares. The firm noted how AppLovin has performed well in 2024. Indeed, the stock has soared more than 700% and outperformed even the biggest names in the AI space. In its earnings call, the company noted that it will be divesting its apps business as it aims to move into other verticals for its artificial intelligence-powered AXON advertising software.

Even though Citi has raised the price target on AppLovin, it said that it sees “one small risk,” potentially in the second half of 2025, as well as “many potential opportunities” beyond 2025. The small risk that the firm has highlighted is Unity’s new advertising technology solution within its Grow segment. The analyst told investors in a research note that if Unity’s Grow segment improves, the potential revenue headwind for AppLovin is likely to be small. Unity and AppLovin are competitors, and despite competitive pressure from Unity, the growth potential for AppLovin remains strong.