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.

Photo by Mizuno K on Pexels

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.

While we acknowledge the risk and potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APP and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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