AppLovin Stock Is Trending Wednesday: What's Going On?

Shares of Applovin Corporation (NASDAQ:APP) are trending on Wednesday. Wedbush published a positive note about the software company.

• AppLovin stock is showing positive momentum. What’s ahead for APP stock?

What To Know: Wedbush, which has an Outperform rating on AppLovin with an $800 price target, held an advisor call on Tuesday focused on the company.

Key takeaways include a strong acceleration in mobile gaming eCPMs ahead of the holiday season. The firm attributed the increase to the company’s e-commerce initiative, as well as more game volume.

Analyst Alicia Reese said AppLovin has a “significant data moat” from its MAX product, which allows users to run real-time bidding for advertising space on their apps. AppLovin feeds the valuable data into the company’s AXON algorithm, the tool behind the ad-to-app matching process.

Reese said this creates a cycle of continuous model optimization that competitors struggle to match. Wedbush is also impressed by Applovin’s expansion into e-commerce. Some believe that core gaming ad spend is nearing a capped saturation point, but Reese said the e-commerce pivot insulates AppLovin from this ceiling.

In its most recent quarter, Applovin beat Wedbush’s and the overall market’s expectations for revenue and adjusted EBITDA. Applovin reported $1.405 billion in revenue versus the firm’s estimate of $1.35 billion and market consensus of $1.34 billion. The company also beat market expectations for earnings-per-share, reporting $2.45 compared to a consensus of $2.41.

Looking ahead, Wedbush is also optimistic due to an upcoming public rollout of AppLovin’s Axon Ads platform, which will be supported by AI agents for automation and generative AI for ad creatives. The firm expects long-term growth from factors like increased advertiser density, international localization and expansion into open web inventory.

APP Price Action: AppLovin shares were down 1.62%, trading at $665.76 at the time of publication, according to Benzinga Pro.

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• A Look Into AppLovin Inc’s Price Over Earnings

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