Citi on AppLovin: 'US Store Growth Accelerating'

Citi analyst Jason Bazinet reiterated a Buy rating and $600.00 price target on AppLovin Corp (NASDAQ: APP).

According to the analyst, data from Store Leads through Oct. 9 suggests AppLovin had 16,550 global eCommerce clients, a 5.2% increase from the prior week. U.S. stores reached 6,232, up 2.7% week-over-week.

Bazinet noted that U.S. store growth accelerated from an average weekly rate of 1.7% in August to 2.7% over the most recent four weeks. International stores grew 9.2%, led by Hong Kong and China, which the analyst attributed to dropshipping activity and AppLovin's title sponsorship of ShopX, an APAC eCommerce summit held Sept. 17.

The U.S. share of total stores fell 150 basis points to 46.4% as international growth outpaced domestic growth. Among product categories, the Home and Garden segment increased its share by 120 basis points to 19.4%.

Among the five most popular eCommerce firms using both Shopify and AppLovin Ads, the average store rank improved by 10 spots, from 404 to 394, partly due to the addition of Steve Madden, ranked 266.

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