AppLovin Corporation (NASDAQ:APP) is one of the best communication services stocks according to Hedge Funds.
BTIG analyst Clark Lampen reiterated his bullish stance on AppLovin Corporation (NASDAQ:APP), assigning a Buy rating on December 17. Lampen also raised his price target from $705 to $771, which now results in a potential upside of 22%. Lampen has a positive outlook for the gaming and gambling end markets in 2026, based on expectations of strong user acquisition trends.
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On December 11, Mike Hickey of Benchmark & Co. also reaffirmed his bullish view on AppLovin Corporation (NASDAQ:APP). Hickey assigned a Buy rating and also revised his target price for the stock from $700 to $775. The stock is still viewed as “Best Idea” that offers a mix of profitability, sustainable margins, growth, and expansion of the total addressable market.
Hickey sees fundamental strength in the business that comes from the rise in e-commerce, more impactful prospecting campaigns, and the influence of Gen AI creative. He also noted management’s views related to optimal spending on AI infrastructure, international expansion plans, and advertiser density.
AppLovin Corporation (NASDAQ:APP) connects advertisers with publishers through an AI-enabled software platform. The software incorporates end-to-end solutions for businesses to monetize their content globally. Recently, the company tilted towards the adtech space in pursuit of lucrative margins, after divesting its mobile gaming segment.
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.
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Disclosure: None. This article is originally published at Insider Monkey.
