Apr. 9 at 6:45 PM
Hot Take on
$APP
Just spoke to a sell-side analyst covering
$APP, and they’re SUPER bullish! He’s got a BUY rating with a
$700+ price target!
Key takeaways:
Ad spend is accelerating—companies went from low single-digit increases to high single-digit growth in Q1. This is the fastest ramp he’s seen for a single platform.
$APP's ecommerce product is about to launch out of beta (by Q2), and with only 7k customers vs. 3M Shopify stores, the potential is HUGE.
GenAI products are the game-changer: advertisers can create more targeted ads faster, driving better CTR, lower CAC, and higher ROAS.
Analyst expects 50% revenue growth in CY2026, but that could be conservative given ecommerce’s massive potential.
$APP is trading at 20x NTM GAAP-EPS while growing at a 40% CAGR—seems wildly undervalued!
$APP is down 50% from its December highs, but with ecommerce TAM barely tapped and beta at 2.5x explaining the extra downside pain, the dip looks like an opportunity.
