10 AI Stocks Analysts Are Watching Closely

5. AppLovin Corporation (NASDAQ:APP)

Number of Hedge Fund Holders: 110

AppLovin Corporation (NASDAQ:APP) is one of the 10 AI Stocks Analysts Are Watching Closely. On January 6, Benchmark analyst Mike Hickey reiterated a Buy rating on the stock with a $775.00 price target. The firm has named APP as its 2026 EDM Top Idea as it sees a clear path to scalable, high margin growth this year.

The firm highlighted how AppLovin enjoys core gaming growth and is also building a second growth engine in web and e-commerce advertising. The company is attracting more advertisers, and more of them have begun adopting its self-serve AXON Ads Manager.

Moreover, new product-driven catalysts is helping expand both advertiser count and wallet share. According to AppLovin’s management, self-serve advertising are delivering early but good results, there is improving ROAS from prospecting campaigns, and also incremental conversion upside from AI-driven creative tools.

All of this is against a fixed user base of over 1 billion daily actives, noted the analysts.

“With AEBITDA margins already in the low 80% range and minimal incremental cost to scale, we see a clear path to sustained revenue growth and strong earnings leverage into 2026.”

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.