AppLovin (APP) shares rose approximately 2.5% Friday following a new Citi report. Citi initiated a 90-day upside catalyst watch with a $600 price target. This target implies a potential 91% upside for the stock over the next three months.
Analyst Aarushi Gupta labeled concerns over third-quarter guidance as misguided. Gupta noted that the second quarter typically represents the company's slowest period.
Citi expects e-commerce to eventually replace gaming as the primary revenue driver. The bank cited a larger total addressable market and potential for client growth in the e-commerce sector.