Macquarie: AppLovin's Prospects Strong Despite Apple's New Ad App Attribution Tool
Analysts at Macquarie have maintained their positive outlook on AppLovin Corp. They addressed concerns about the impact of Apple's new ad attribution tool during a report on Monday.
Apple recently introduced AdAttributionKit at its WWDC conference. This new tool replaces the older SKAdNetwork4.0 and promises better features for measuring app ads. However, Macquarie analysts argue that the market's negative reaction to this news has been exaggerated.
"We believe the market's overreaction creates a buying opportunity," said the analysts. They emphasized that AppLovin continues to outperform its competitors in the mobile adtech sector thanks to its AI-driven Axon 2 bidding technology.
Apple's Latest Tool and AppLovin's Resilience
AdAttributionKit is designed to comply with the EU's Digital Markets Act (DMA). According to a report from AppLovin's Adjust division, this new tool offers significant improvements over its predecessor.
Why Analysts Remain Positive
Despite ongoing privacy concerns about Apple's app store policies, Macquarie analysts are confident that AdAttributionKit will not negatively impact AppLovin’s performance. Just like Apple's previous IDFA restrictions didn't hurt AppLovin's ad tech, this new update is expected to have a similar non-impact.
Macquarie reaffirmed its Outperform rating for AppLovin Corp, setting a price target of $115.
Conclusion
For those following the tech and ad markets, Macquarie's analysis suggests that the unjustified market reaction to Apple's latest tool might be an opportunity to invest in a strong-performing company like AppLovin.
Key Takeaway: The new AdAttributionKit by Apple should not hinder AppLovin's ability to purchase ads effectively, reinforcing the company's robust position in the mobile adtech industry.
Outperform rating remains intact with a price target of $115.
