AppLovin Analyst Maintains Bearish View on Stock Ahead Of Q2 Amid Concerns Over Apple's Impact
Portfolio Pulse from Anusuya Lahiri
Benchmark analyst Mark Zgutowicz maintains a bearish view on AppLovin Corp (APP) ahead of its Q2 report, despite a raised price target from $14 to $17. The analyst cites concerns over Apple Inc's (AAPL) inevitable eradication of fingerprinting, which APP's platform signals are materially dependent on, and ongoing restrictive IDFA dynamics as reasons for his skepticism. He also questions APP's longer-term ROAS trajectory and the company's ability to predict platform efficacy improvements.
August 08, 2023 | 8:27 pm
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NEUTRAL IMPACT
Apple Inc's policies, particularly its expected eradication of fingerprinting, could impact companies like AppLovin Corp that are dependent on such practices.
While the news directly pertains to APP, Apple's policies are highlighted as a key factor impacting APP's business model. However, the news does not indicate any direct impact on Apple's own stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
AppLovin Corp's stock may face downward pressure due to concerns over its dependence on fingerprinting and restrictive IDFA dynamics, which are expected to be impacted by Apple's policies.
The analyst's bearish view, despite a raised price target, indicates skepticism about APP's business model, particularly its dependence on fingerprinting and restrictive IDFA dynamics. These factors, coupled with Apple's expected policy changes, could negatively impact APP's stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100