1. AppLovin is reshaping mobile gaming for e-commerce. 2. BofA forecasts a 36.6% upside, with an $860 target. 3. E-commerce ad spending expected to soar to $6.8 billion by 2026. 4. Mobile gaming engagement rose 7-9% year-to-date, boosting AppLovin's prospects. 5. BofA estimates significant ad-spend potential if developers adopt e-commerce ads.
The projected growth in e-commerce ad spend and AppLovin's rising engagement suggests strong future revenue, comparable to other tech-driven growth in digital ad spending, such as Facebook's early years in mobile ads.
The insights provided directly relate to AppLovin's business model and growth potential, highlighting transformative market shifts that underpin its revenue projections.
The anticipated shifts and growth in e-commerce spending will take time to materialize, similarly to how it took years for digital ad platforms to fully leverage mobile engagement.