AppLovin (APP), an AI-powered mobile ad-tech platform, saw its stock rise 6.5% in extended trading after being included in the S&P 500 Index. Year-to-date, APP stock has surged over 51% and 456% since last year, driven by strong demand for its AI technology, which helps advertisers effectively reach mobile game users. Jefferies analyst James Heaney maintains a Buy rating and has increased his price target to $615 due to robust Q2 results, with revenue growth of 77% year-over-year and significant demand for the Axon 2.0 ad engine.
AppLovin also stands to benefit from recent legal changes affecting Apple’s App Store monetization. Analysts estimate a strong future for the stock, with a consensus Strong Buy rating and an average price target of $530.59, suggesting an 8.2% upside. Investors are optimistic about APP’s prospects, bolstered by institutional interest from its S&P 500 inclusion.
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