"Shares of AppLovin were moving higher today as the fast-growing adtech company continued to bounce back after last week's sell-off ahead of its fourth-quarter earnings report tomorrow. Yesterday, the stock jumped after a short-seller, CapitalWatch, retracted its accusation last month that the company was laundering money, and today it got a bullish note from Wall Street. As of 11:01 a.m. ET, the stock was up 2.7% on the news."
"The biggest piece of news out on AppLovin was that UBS lowered its price target on the stock from $840 to $686, reflecting the stock's recent pullback, but maintained a buy rating on the stock. In the note, UBS said that AppLovin benefited from strong return on ad spend (ROAS) from its AI engine, Axon 2.0, as well as growing e-commerce spend and increasing advertiser adoption."
"Analysts expect the company to report $1.61 billion in revenue, up 48.1% from the quarter a year ago, and for adjusted earnings per share to increase from $2.07 to $3.07. Other analysts have also reported strong growth in Axon adoption, so the signs are there for a post-earnings pop in AppLovin. We'll get the full story tomorrow afternoon when the adtech company reports earnings."
AppLovin shares rebounded after a recent sell-off, rising 2.7% as of 11:01 a.m. ET ahead of its fourth-quarter earnings report. A short-seller, CapitalWatch, retracted a prior accusation of money laundering, contributing to the rally. UBS lowered its price target from $840 to $686 but kept a buy rating, citing strong ROAS from Axon 2.0, growing e-commerce ad spend, and rising advertiser adoption. Jefferies reiterated a buy rating with an $860 target. Analysts expect $1.61 billion in revenue, up 48.1% year-over-year, and adjusted EPS of $3.07, indicating potential post-earnings upside.
Read at The Motley Fool
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