11 AI Stocks That Should Be On Your Watchlist

6. 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 22, UBS raised the firm’s price target on AppLovin to $440 from $315 and kept a “Buy” rating on the shares. The analyst told investors in a research note that the firm conducted a channel check which has led it to be more confident in Applovin’s e-commerce opportunity. The company’s e-commerce opportunity lies in its ability to leverage AI-driven technology to help brands acquire and retain customers. Initially focused on mobile gaming, the company has been using its AI-powered platform, Axon, to expand into the broader e-commerce sector. According to the firm, channel checks conducted for Applovin have been positive but revealed that the company hasn’t had a major tweak in its algorithm for gaming user acquisition advertisers. It further stated that e-commerce advertisers anticipate AppLovin to gain wallet share in 2025.  The growth will be driven by new customers to the brand instead of coming at the expense of other advertising channels.