S&P 500 Futures Drop in Pre-Market Session; Kyndryl Holdings and Hims & Hers Health Underperform
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy APP?
Source: Barron's
Market Opening: U.S. stock markets are set to open in two hours.
Dynatrace Inc. Performance: Dynatrace Inc. (DT) saw a 13.9% increase in pre-market trading.
Kroger Co. Performance: Kroger Co. (KR) experienced a 5.0% rise in pre-market trading.
Overall Market Sentiment: The pre-market gains indicate positive sentiment among investors for these companies.
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Analyst Views on APP
Wall Street analysts forecast APP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APP is 763.44 USD with a low forecast of 650.00 USD and a high forecast of 860.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 456.810
Low
650.00
Averages
763.44
High
860.00
Current: 456.810
Low
650.00
Averages
763.44
High
860.00
About APP
AppLovin Corporation is a marketing platform. The Company provides end-to-end software and artificial intelligence (AI) solutions for businesses to reach, monetize and grow their global audiences. Its advertising solutions include a comprehensive suite of tools including AppDiscovery, MAX, Adjust, Wurl and Axon Ads Manager. AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is its monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publisher’s advertising inventory by running a real-time competitive auction, driving more competition, and higher returns for publishers. Adjust is its measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing and drive more informed results. Wurl is its connected TV (CTV) platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
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- Increased Volatility: The VIX surged 16%, as investors rotated into defensive sectors, with utilities and consumer staples outperforming, highlighting a risk-off tone in the market.
See More
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- Analyst Optimism: Wedbush analyst Alicia Reese reiterated an Outperform rating on AppLovin and raised the price target from $465 to $640, viewing the current stock pullback as a buying opportunity with significant upside potential in the future.
- Market Reaction Concerns: Despite the strong earnings report, AppLovin's stock fell 19.11% to $369.50 on Thursday, reflecting market concerns about the company's future growth, particularly regarding the time and data required for new business verticals to deliver meaningful value.
- Cautious Management Approach: Management indicated a commitment to continued strong growth and record margins but stressed they are not rushing to market, instead carefully curating a high-performing product stack to ensure long-term sustainability.
See More
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- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
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See More
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- Record Margin Achievement: The company achieved a record margin of 84.4% in the quarter, indicating significant growth opportunities ahead, although analysts noted cautious expectations regarding future product drivers.
- Optimistic Guidance: Management provided a revenue guidance of 5%-7% sequential growth for Q1, which was better than expected, suggesting that gaming and e-commerce revenues are likely to continue growing, despite e-commerce contributions falling short of expectations.
- Negative Market Reaction: Although Applovin's sequential revenue growth of 18% surpassed guidance, it failed to meet investor expectations of around 20%, resulting in an 18.51% drop in share price following the earnings release.
See More
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- Strong Performance: AppLovin (APP) reported stronger-than-expected Q4 results; however, shares fell 13% in early trading due to concerns over artificial intelligence and increased competition from Meta, Google, and CloudX in the in-game advertising space.
- Analysts Remain Positive: Morgan Stanley maintained an Overweight rating on APP but lowered its price target from $800 to $720, emphasizing the growth potential of its e-commerce self-serve platform, which is expected to drive earnings revisions for 2026 and beyond.
- Conversion Rate Optimization: Jefferies analysts noted that while new advertisers show solid 30-day LTV/CAC payback, only 57% of qualified leads are converting, indicating a need to optimize the conversion funnel; the upcoming GenAI creative tools are expected to boost conversion rates to 70-80%.
- Competition Dynamics: AppLovin CEO Adam Foroughi addressed competition during the earnings call, asserting that despite increased competition, the company's auction dynamics maintain its edge, as the value of each impression varies significantly, showcasing the effectiveness of their valuation model.
See More
