"Already primed for bullishness, investors got the nudge they were waiting for, then took the ball and ran with it. Shares of digital advertising specialist AppLovin certainly got the new trading week started on the right foot, soaring 15.1% as of 12:40 p.m. ET Monday. And, more of the same could be in the cards. Just don't dig in too deep if you're planning on digging in at all. This always-volatile meme stock could still just as easily start tumbling again."
"Investment bank Jefferies' analyst James Heaney is being given most of the credit for today's move. Multiple reports are circulating this morning that he reiterated the firm's per-share price target of $860 -- nearly 90% above the ticker's current price -- while calling the stock's 45% pullback from December's high a "great buying opportunity." Although this reiteration isn't yet directly confirmed, it is plausible, as this price target and bullish opinion was Jefferies' last-known verified stance."
"It's not just Jefferies though. While not a conventional research and analysis organization in the same vein as Jefferies, last week, independent investigative journalism entity CapitalWatch corrected and apologized for a damning but misguided money-laundering accusation of one of AppLovin's key shareholders, potentially reversing any selling the initial report may have spurred. Also last week, a well-followed independent investment analyst argued that the competition-driven worries dragging APP shares down this year aren't merited."
AppLovin shares surged 15.1% early Monday after investors reacted to bullish signals. Jefferies analyst James Heaney reportedly reiterated a $860 per-share target and called the stock's 45% pullback a 'great buying opportunity.' CapitalWatch corrected and apologized for an inaccurate money-laundering accusation against a key AppLovin shareholder, potentially reversing prior selling. An independent analyst argued that competition concerns from Alphabet and CloudX are overstated and could be advantageous for AppLovin. Prior bearish market conditions may have obscured these developments until Jefferies' reported reiteration brought renewed attention. The stock remains volatile and could easily reverse course.
Read at The Motley Fool
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