APP
Same song, different bank
BofA Securities just waved the green flag again on AppLovin, reiterating its Buy rating and sticking with a chunky $705 price target. In plain English: they still think the stock’s runway is long, even after a monster run.
The eCommerce angle
The key part of the note is the eCommerce revenue inflection. BofA’s Omar Dessouky thinks AppLovin can become a bigger go-to-market channel there, which is Wall Street-speak for: “this could be more than just a flashy ad-tech winner.” If that thesis starts showing up in the numbers, the market could keep rewarding the stock with premium expectations.
Why investors should care
AppLovin is already trading like a company with a lot of optimism baked in. The piece points out that the shares sit above InvestingPro’s fair value estimate, so the bar is high — think less “prove you can grow” and more “prove you deserve the runway you’ve already been given.”
Big picture
This isn’t new business model news, but it does reinforce the wall of analyst support around APP. When banks keep raising the “show me” sign while the stock keeps running, you know expectations are doing a little dance of their own.