AppLovin Gains Buy Rating, Praised for Mobile Gaming and AI Leadership

SAN FRANCISCO, Oct. 22 Shares of AppLovin APP treaded almost 1% higher on Tuesday after Loop Capital started coverage of the mobile software company with a Buy rating and a price target of $181. Analyst Rob Sanderson underscored AppLovin's importance in the mobile gaming space as well along with its positioning in the Big Data and AI spaces.

Sanderson stated in a letter to clients, "AppLovin has become indispensable infrastructure for the mobile gaming industry and is proving itself as a big data and AI play for investors." He pointed out that although the stock had a relatively impressive market capitalization and showed remarkable expansion, it was previously "mostly misunderstood until breaking out recently." Sanderson also underlined the possibility for the company's valuation to stay sustainable while still providing a significant growth path in its niche.

Moreover, in highlighting AppLovin's software division's prowess and superior margins margin, Sanderson likened AppLovin to The Trade Desk (TTD). He also mentioned the company's possible eCommerce advertising expansion, which would greatly add to its addressable market.