• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

AppLovin: Citi hikes PT by 37% on ad growth potential, eCommerce expansion

by December 6, 2024
written by December 6, 2024

Investing.com– Citi has significantly increased its price target for Applovin Corp (NASDAQ:APP), citing promising growth prospects in the eCommerce space.

The investment bank raised its target to $460 from $335, reflecting a 37% increase, while reiterating a “Buy” rating for the marketing software firm.

Citi’s bullish outlook follows its meeting with AppLovin’s leadership, where the company highlighted its strategic advancements in ad technology and its initial success in eCommerce advertising, which is still in beta. Management expressed optimism about boosting ad conversion rates from the current 1% to 5%, approaching social media platforms’ benchmarks, the brokerage said in a note.

“We came away from the meeting incrementally more bullish on the firm’s growth prospects both in mobile gaming and eCommerce,” analysts said.

Additionally, AppLovin’s ability to monetize eCommerce ads without competitive risks could attract new advertisers beyond its traditional mobile gaming clients, said Citi analysts.

“Given this backdrop of potential growth vectors, we are modestly raising our software revenue estimates and now fall toward the high end of the company’s targeted range of 20% to 30% annual Ad revenue growth,” analysts wrote.

Despite labeling the stock as high risk due to industry volatility and execution challenges, Citi emphasized AppLovin’s robust financial profile, diverse game portfolio, and leading tech stack as mitigating factors.

As AppLovin continues to evolve from a mobile gaming-focused platform to a broader digital advertising powerhouse, its exploration into eCommerce could be a game-changer, offering significant growth opportunities in the years ahead, according to Citi.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Vietnam’s soaring US trade surplus stokes new fears of Trump tariffs
next post
Japan stocks lower at close of trade; Nikkei 225 down 0.80%

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • US jobs market cooling but still resilient, Fed’s Kugler says
    • US stock futures edge lower with focus on Trump tariffs, rate cues

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy