While most of the market decided to rip every bullish investor's faces off yesterday, (well, except for Nvidia diehards), AppLovin (NASDAQ:APP) absolutely obliterated shorts. Now I know what you’re thinking: AppLovin? The mobile ad tech company? Really? We're talking about them like they're the next Apple? But here we are, in a world where AppLovin just hit an all-time high of $159, and retail investors are practically foaming at the mouth with excitement.

(Source: Giphy) 

Why? Well Because Bank of America is doing the same as they’ve just DOUBLED their price target for AppLovin to a cool $210, sticking with their ‘Buy’ rating like it’s a badge of honor. Which is extremely interesting considering before yesterday, most peeps were bearish on AppLovin. Today? They’ve flipped faster than a pancake at friggin Waffle House. 

(Source: Investing.com) 

For instance, according to our friends over at Stocktwits, retail sentiment on AppLovin went from “bearish” to “extremely bullish” in just 24 hours as the stock surged 10% (contributing to its 26.89% MTD returns). 

So, with that said, why is Bank of America all horned up on AppLovin? Simply put, it all stems from AppLovin’s secret weapon: their AI-powered ad tech software, Axon 2.0. Apparently, this little piece of tech has been flying under the radar, but now it's the thing that’s transforming growth and profitability. In BofA’s words, the market and investors have been “slow to recognize” the impact of Axon 2.0, but now that the cat’s out of the bag, it’s full steam ahead. 

Because of this, BofA is projecting Axon 2.0 to drive revenue growth of 6% in 2025 and 4% in 2026, which isn’t too shabby considering the broader industry. Additionally, Jefferies also jumped on the hype train last week, upgrading their price target to $175 from $108, citing strong trends in mobile gaming. Their survey suggests AppLovin's software platform could sustain 20-30% revenue growth for the next two years. Again, that’s some serious staying power—if it holds up. 

(Source: Ad Exchanger) 

But, but, but… remember, up until yesterday, most folks were bearish on this stock. Why? In short, AppLovin has already had a monster year. The stock has shot up over 300% in 2024 alone. That’s not a typo. Three hundred percent. They’ve been crushing analyst expectations for four straight quarters, and like any Wall Street Logic, when a bullish streak like this has gone on for so long… the number crunchers start shouting “correction” ahead. 

(Source: Giphy) 

Which means, AppLovin’s success is dividing Wall Street like a bad Thanksgiving dinner. While BofA is practically throwing confetti, Goldman Sachs hit the brakes, downgrading AppLovin to “neutral” with a $147 price target. Meanwhile, Citi and Macquarie are still bullish, with price targets at $155 and $150, respectively. 

(Source: Stock Invest) 

On the other hand, Benchmark is the worst of the pessimistics, basically saying AppLovins stock is headed straight for $66, indicating a 58% plunge from current levels. 

The takeaway here? Even with a mixed bag of bullish and bearish price targets on Wall Street, AppLovin has become a stock to watch in 2024, whether you like it or not. Retail sentiment is through the roof, and with analysts like BofA and Jefferies raising their price targets, it’s hard to ignore the momentum.

(Source: Giphy) 

Especially when you put on your tinfoil hat and think: Are Goldman Sachs and Benchmark putting out bad press on AppLovin for a “BTFD” opportunity? Oooh that’s something juicy to think about, and honestly, I legit wouldn’t put it past them even if that were the case. 

(Source: Giphy) 

In the end though, it’s no secret that AppLovin’s stock is riding high on a wave of optimism and AI-powered ad tech. And as long as Axon 2.0 keeps delivering, $APP might just continue serenading retail investors from this point forward.

In the meantime, keep an eye on this stock going forward and as always, stay safe and stay frosty, friends! Until next time…

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Stocks.News holds positions in Apple as mentioned in the article.