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AppLovin's Non-Gaming Expansion Drives Piper Sandler's Optimism

Market IntelTuesday, Apr 29, 2025 12:06 am ET
1min read

Piper Sandler has expressed optimism about the upcoming first-quarter earnings report of applovin, a mobile software company, scheduled to be released on May 7. The firm highlighted several key areas that could boost investor confidence in the company's performance. These areas include improvements in conversion efficiency between non-gaming applications, diversification of advertisers in the e-commerce sector, refined customer segmentation, expansion of non-gaming clients, and the advancement of connected TV advertising strategies.

James Callahan, an analyst at piper sandler, emphasized the significance of AppLovin's expansion into the non-gaming market, which is approximately ten times larger than the gaming sector. Given AppLovin's strong presence in the gaming industry, its foray into non-gaming markets is crucial for enhancing its valuation. Callahan also noted the positive performance of the gaming business, based on verified data from multiple sources, and maintained an optimistic outlook on its growth trajectory. The analyst reiterated a "buy" rating and a target price of $425 for the stock.

The report also revealed that AppLovin may have initiated testing for a mobile application integration scheme. This innovation aims to help non-gaming advertisers direct users directly into applications rather than mobile web pages, potentially expanding the company's market reach, particularly among the Fortune 500 advertisers.

Callahan further highlighted the potential for AppLovin to focus on service-oriented advertisers, who constitute about 25% or more of the total client base. These clients are minimally affected by tariff policies, making them a strategic target for expansion. Successfully increasing the number of non-gaming advertisers could drive sustained growth in the total number of advertisers and bring in new client resources for the company.

Ask Aime: "Should I buy AppLovin's stock before the earnings report?"

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akashkurien
04/29
$APP on the rise
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applesandpearss
04/29
Holding some APPLovin shares long-term. Their gaming biz is solid, and non-gaming forays could skyrocket their valuation. Not risking the farm here.
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NoTearsNowOnlyDreams
04/29
Connected TV ads could be a game-changer.
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Elibroftw
04/29
APPLovin's got the gaming market on lock, but it's their non-gaming push that's got me hyped. New target groups mean new revenue streams.
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PvP_Noob
04/29
$AAPL and $TSLA have been cash cows, but I'm diversifying with APPLovin. Non-gaming sector's massive, and their strategies are on point.
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Sam__93__
04/29
Diversification's the name of the game. APPLovin's not just riding the gaming wave; they're surfing the non-gaming tsunami. Piper Sandler's onto something big here.
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JC-YNWA
04/29
Holding $APPL shares long-term; bullish on expansion.
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Urselff
04/29
APPLovin's non-gaming push = 🚀 potential growth
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Traglc
04/29
Mobile APP integration testing? Game-changer alert. If they nail this, AppLovin could see a massive uptick in user engagement and advertiser interest.
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Fountainheadusa
04/29
Targeting Fortune 500 with in-APP experiences is genius. Mobile web is so 2022. AppLovin's on a cutting-edge path here.
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shakenbake6874
04/29
APPLovin expanding into non-gaming is like finding gold in a treasure map. 🌟 Piper Sandler sees big bucks coming from e-commerce and CTV. Bullish vibes!
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sesriously
04/29
@shakenbake6874 Totally agree, APPL's a gem.
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Revolutionary-Slip48
04/29
@shakenbake6874 What's your take on CTV ads?
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sniperadjust
04/29
Diversification is key; gaming alone is limited.
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Munoz10594
04/29
$Z Wells Fargo starts coverage with an equal weight rating and sets a target price of $62 Piper Sandler lowers target price to $80 from $90
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Hoo_Bear
04/29
@Munoz10594 Wells Fargo's rating seems meh.
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vdeventa
04/29
Service-oriented ads are the unsung heroes. Less hit by tariffs, more growth potential. APPLovin's smart to focus on these clients.
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Particular-Ad-8433
04/29
APPLovin expanding into non-gaming is like loading up on $AAPL in the 90s. Long-term gains incoming.
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