Shares of AppLovin Corp. (APP) drew significant investor attention on Monday after Bank of America cited industry data that indicated that the advertising company’s e-commerce footprint growth was soft in June.
At the time of writing, APP stock was down more than 12% and on track to close in the red for a fifth consecutive session.
BofA’s Takeaway
According to TheFly, Bank of America said third-party data showed that AppLovin added about 750 new pixels last month, compared with about 950 net additions in May.
However, BofA highlighted that the data covers only the first two weeks of general availability to e-commerce advertisers and feels it's too soon to draw conclusions based on early data.
Another report by Street Insider said BofA thinks AppLovin’s current valuation appears “reasonable” at 17 times calendar year 2027 earnings before interest, taxes, depreciation, and amortization, with the company’s gaming segment alone capable of growing more than 20% year-over-year.
The firm reiterated its “Buy” rating and $705 price target on the stock, implying 39% upside potential from the stock’s closing price on Friday.
Citi Sees ‘Solid’ US Growth For AppLovin
Citigroup, on the other hand, also reiterated its bull case for the digital advertising company and cited data from Store Leads indicating that, as of July 10, AppLovin had 10,471 e-commerce clients, a 2.4% increase from the prior week, Street Insider reported.
Koyfin data shows that 29 out of 32 analysts covering the stock rate it a ‘Buy’ or higher, while two rate it a ‘Hold.’
What Do Retail Traders Think About APP?
On Stocktwits, retail sentiment toward APP turned ‘bullish’ from ‘bearish’ over the last 24 hours, amid ‘high’ message volumes.
One user on the platform views the current sell-off in the stock as “overdone.”
Another user highlighted that APP’s short-term sentiment is clearly under pressure.
is down 24% so far this year.