Why investors showered AppLovin stock with love this week

It’s not often that an analyst increases a stock’s price target by 74%, but that’s exactly what happened AppLovin (NASDAQ:APP). The share price of the next-generation adtech company, which has already been a commanding outperformer on the stock market, has risen sharply in recent days. The company was up nearly 13% for the week so far through the Friday before market open, according to data compiled by S&P Global Market Intelligence.

Stifel commented on AppLovin with a new research note on Thursday morning. In it, the analyst firm increased – perhaps I should say “catapulted” – its price target to $435 per share. This is significantly more than the previous amount of $250. It almost goes without saying that Stifel is bullish on the company; When the price target was changed, the existing buy recommendation remained in place.

Miss the morning report? Breakfast News delivers it all in a fast, fun and free daily newsletter. Register for free »

Not to be outdone, same day Citigroup and BTIG both made hefty increases. The former increased its fair value to $460 per share from $335 previously, while BTIG’s respective values ​​were $432 and $291. The two companies also maintained their AppLovin buy ratings.

Reportedly, the reasons for these moves were somewhat different, but all three believe that the specialized technology company faces excellent opportunities and has the means to take advantage of them. Stifel noted AppLovin’s ability to leverage and leverage data from its brokerage platform and expressed optimism about entering the e-commerce advertising segment.

These price target hikes may sound excessive, but AppLovin stock has been a real racehorse this year – it’s up an incredible 851% year-to-date, and we haven’t even reached New Year’s yet. That’s understandable, as the company is very well positioned to benefit from the strong growth in digital advertising and therefore has a pretty exciting future ahead of it.

Before you buy shares on AppLovin, you should consider the following:

The Motley Fool Stock Advisor The analyst team has just identified what they think this is The 10 best stocks so investors can buy it now… and AppLovin wasn’t one of them. The ten stocks that made the cut could deliver huge returns in the years to come.

Think about when Nvidia created this list on April 15, 2005… if you have $1,000 invested at the time of our recommendation, You would have $889,004!*

Stock Advisor provides investors with an easy-to-understand roadmap to success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor has service more than quadrupled the return of the S&P 500 since 2002*.

The story continues