5 Most Promising New Technology Stocks According to Analysts

3. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 24

Estimated One-Year Price Target: $23.23

AppLovin Corporation (NASDAQ:APP) is known for its platform for mobile app developers. AppLovin Corporation (NASDAQ:APP) recently jumped after the company posted its fourth quarter results and gave a strong Q1 guidance. While revenue in the fourth quarter fell 11.4% on a YoY basis, it still beat estimates by $11.83 million. For the first quarter of 2023, AppLovin Corporation (NASDAQ:APP) expects its revenue to come in the range of $685 million to $705 million, versus the consensus estimate of $677.13 million.

In November, Jefferies analyst Brent Thill started covering AppLovin Corporation (NASDAQ:APP) with a Hold rating. The analyst said that he doesn’t think mobile advertising is “broken long-term” after platform policy changes.

Vulcan Value Partners made the following comment about AppLovin Corporation (NASDAQ:APP) in its Q3 2022 investor letter:

“We fully exited AppLovin Corporation (NASDAQ:APP). AppLovin was a mistake that we were still trading and therefore did not discuss in our second quarter letter. AppLovin owns a portfolio of over 300 mobile games and operates an advertising platform for third party gaming apps. Our investment case hinged on the company’s advertising platform data from the owned games business which we believed was its key competitive advantage. Through our recent research, we concluded that management is likely planning to restructure or sell all or some of the owned games business. In addition, while we thought AppLovin’s second quarter results were good, with revenue up 16%, the company lowered guidance on its long-term organic growth opportunity. To achieve their long-term plans, the company is relying on new initiatives which we would categorize as early stage. As our understanding of a company’s competitive advantage changes, we reevaluate the business to determine how this affects our investment thesis. For AppLovin, we determined that the company’s competitive advantage was not as strong as we once thought, and we followed our discipline by selling AppLovin and redeploying capital into companies that we believe have more stable values and attractive margins of safety.”