AppLovin stock surged Wednesday after getting a bullish report from BofA Securities on prospects for advertising and e-commerce growth at the mobile app marketing platform.
In a client note, BofA analyst Omar Dessouky reiterated his buy rating and "top pick" designation for AppLovin stock. He also raised his price target to 120 from 100.
On the stock market today, AppLovin stock soared 13.2% to close at 97.57. With the advance, AppLovin shares returned to the buy zone of their attempted breakout on Aug. 22. On that day, APP stock touched a buy point of 91.91 out of a six-week consolidation pattern, according to IBD MarketSurge charts. But the stock ended that day below the buy point at 89.
Then, it flirted with the buy zone for another week before dropping into the sell zone. However, in a positive sign, AppLovin stock found support at its 50-day moving average line. On Wednesday, APP stock ended the regular session just above the 5% buy zone, which extended to 96.51.
Dessouky upped his price target on AppLovin after meeting with the company's chief executive and chief financial officer. The analyst sees AppLovin beating expectations in 2025 and 2026, driven by e-commerce acceleration and sustained gaming growth.
AppLovin Stock Is On Tech Leaders List
AppLovin's software platform enables app developers to market, monetize and analyze their apps. The company also makes mobile games such as "Wordscapes," "Matchington Mansion" and "Game of War."
Meanwhile, management expressed confidence in the company's artificial intelligence engine to improve customer targeting for advertisements and app downloads.
AppLovin stock is up strongly since its upbeat second-quarter earnings report on Aug. 7.
Further, AppLovin stock is on the IBD Tech Leaders list.
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