"Artificial intelligence (AI)-powered mobile ad-tech platform AppLovin (APP) saw its stock surge 6.5% in Friday's extended trading session on the news of its inclusion in the S&P 500 (). APP stock has rallied by more than 51% year-to-date and 456% over the past year, as investors are optimistic about the demand for the company's AI technology, which enables advertisers to target mobile game users more effectively. Wall Street has a Strong Buy rating on APP stock and sees continued upside from current levels."
"The inclusion of AppLovin in the S&P 500 Index is expected to drive institutional interest and potentially boost its stock price. Notably, AppLovin, Robinhood Markets (HOOD), and Emcor Group (EME) will replace MarketAxess Holdings (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH) in the S&P 500, respectively, on September 22. AppLovin reported stellar second-quarter results, which helped boost investors' confidence despite certain allegations made by three short sellers - Fuzzy Panda Research, Muddy Waters, and Culper Research."
"The 77% year-over-year growth in APP's Q2 revenue to $1.26 billion and a 168.5% jump in earnings per share (EPS) reflect strong execution and solid demand for the company's offerings, mainly the Axon 2.0 ad engine. Additionally, AppLovin is well-positioned to gain from the legal battle between Apple (AAPL) and Epic Games, as changes to the iPhone maker's App Store monetization policies are expected to benefit mobile advertisers and app developers."
AppLovin's stock rose sharply after the company was added to the S&P 500, fueling institutional interest and potential price upside. APP has rallied over 51% year-to-date and 456% over the past year as investors favor its AI technology for targeting mobile game users. Q2 revenue grew 77% year-over-year to $1.26 billion and EPS jumped 168.5%, driven by demand for the Axon 2.0 ad engine. AppLovin may gain from potential changes to Apple's App Store monetization that could favor mobile advertisers and developers. Jefferies reiterated a Buy rating and raised its price target after a management meeting, reflecting bullish analyst expectations.
Read at TipRanks Financial
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