AppLovin Expands into E-commerce, Deutsche Bank Initiates 'Buy' Rating
AppLovin, a mobile advertising and marketing technology company, is set to expand its presence in the e-commerce market. This move is expected to diversify its revenue streams. Deutsche Bank analyst Benjamin Black has initiated coverage with a 'buy' rating, predicting significant growth and praising the company's advertising technology.
Black estimates AppLovin's revenue to grow between 20% to 30% year over year in the coming years. The company is scheduled to report its third-quarter results on Nov. 5, with revenue guidance of $1.33 billion and adjusted EBITDA of $1.08 billion. Black believes AppLovin's advertising technology outperforms competitors, citing its leading position in mobile game user acquisition and expansion into e-commerce advertising.
Shares of AppLovin (APP) have soared about 292% over the past year. Following Black's buy rating, the stock price rose sharply. Black has set a price target of $705, representing a 17% upside from the current price. He praises AppLovin's 'best-in-class' advertising technology and its dominance in mobile game user acquisition, with over 1 billion daily active users.
AppLovin is poised for growth in the e-commerce market, with analysts predicting strong revenue increases. The company's advertising technology is considered superior, and its stock price has seen significant gains. As it reports its third-quarter results, investors will be watching for further signs of AppLovin's robust performance.
