AppLovin (APP) Climbs 10.4% on Bullish Call, PT Hike

AppLovin Corp. (NASDAQ:APP) is one of the 9 Stocks With Unbelievable Gains.

AppLovin climbed by 10.42 percent on Wednesday to close at $567.83 apiece, as investors took heart from Morgan Stanley’s reiteration of its bullish coverage and price target, implying a huge upside potential.

In a market note, the investment firm reaffirmed its overweight rating and $720 price target on shares of AppLovin Corp. (NASDAQ:APP), representing a 27 percent upside from its latest closing price.

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Morgan Stanley said that the coverage reflected its optimism that the company still holds a huge headroom for growth over the next few years, given its 10x conversion rate gap with market leaders.

It is also believed that AppLovin Corp. (NASDAQ:APP) would be able to sustain above-market growth by continuing to expand its conversion rates, with 99 percent of its ads still not converting to sales.

In other news, AppLovin Corp. (NASDAQ:APP) announced a strong earnings performance in the first quarter of the year, with net income more than doubling to $1.206 billion from only $576 million in the same period last year.

Revenues also came in at $1.842 billion, jumping 59 percent from the $1.159 billion in the same comparable period.

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