Wells Fargo Raises PT on AppLovin (APP) Stock

AppLovin Corporation (NASDAQ:APP) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 7, Wells Fargo lifted the price objective on the company’s stock to $575 from $571, and maintained an “Overweight” rating. The analyst noted that mobile game checks in Q2 reflect weakness in the return on advertising spend because [...]

AppLovin Corporation (NASDAQ:APP) is one of the Best Monopoly Stocks to Buy According to Hedge Funds. On July 7, Wells Fargo lifted the price objective on the company's stock to $575 from $571, and maintained an "Overweight" rating. The analyst noted that mobile game checks in Q2 reflect weakness in the return on advertising spend because of cost-per-install inflation.

Furthermore, AppLovin Corporation (NASDAQ:APP)'s category share has peaked at ~45%, added the analyst. Also, web advertising share of wallet is 5% – 10% and did not change much on a YTD basis. The new advertiser growth is modest.

As per the analyst, the setup heading into Q2 earnings remains tough. In a different update, Fitch Ratings upgraded AppLovin Corporation (NASDAQ:APP)'s Long-Term Issuer Default Rating to 'BBB+' from 'BBB'. Also, it upgraded the company's revolving credit facility and unsecured notes to 'BBB+' from 'BBB'.

The upgrade is backed by AppLovin Corporation (NASDAQ:APP)'s leading and strong market position in mobile gaming and elevated scale of spend on its platforms. AppLovin Corporation (NASDAQ:APP) is a technology company that provides AI-powered software solutions designed to help businesses, primarily mobile app developers, grow by acquiring users and monetizing their apps. While we acknowledge the potential of APP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.

If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best FMCG Stocks to Invest In According to Analysts and 11 Best Long-Term Tech Stocks to Buy According to Analysts. Disclosure: None.

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