Stifel raises AppLovin Corporation (APP) price target to $435, citing AXON 2.0 and e-commerce expansion

We recently compiled a list of the 10 AI news stories taking Wall Street by storm. In this article, we’ll take a look at where AppLovin Corporation (NASDAQ:APP) stands compared to the other AI stocks taking Wall Street by storm.

It seems that big tech companies in Silicon Valley are forging ties with the defense industry these days. In the latest news, well-known artificial intelligence company OpenAI has partnered with Anduril, a defense startup that makes missiles, drones and software for the US military.

NOW READ: 15 AI News Updates That Broke the Internet and 15 AI News Investors Shouldn’t Miss.

The companies said this partnership will focus on improving the United States’ unmanned aircraft defense systems (CUAS) and their ability to counter potentially deadly aerial threats in real time. The CUAS will enable defense against drone attacks by detecting and intercepting them in the air.

According to Brian Schimpf, co-founder and CEO of Anduril, OpenAI’s AI models are used to improve air defense systems. The technology will be used to “assess drone threats more quickly and accurately, giving operators the information they need to make better decisions while avoiding danger,” a former OpenAI employee revealed.

“OpenAI is building AI to help as many people as possible and supports US-led efforts to ensure the technology upholds democratic values… Our partnership with Anduril will help ensure that OpenAI technology supports the US “Military personnel protect, and will help the national security community act with understanding and responsibility. Use this technology to ensure the safety and freedom of our citizens.”

Last month, OpenAI rival Anthropic also partnered with a prominent defense company to give “US intelligence and defense agencies” access to its AI models. Regardless of what its competitors do, OpenAI shows no signs of slowing down anytime soon. After months of bidding and rising valuation, the company has reached a new record of 300 million weekly active users. The announcement was made by Sam Altman during an appearance at The New York Times Dealbook Conference on Wednesday, December 4th. The company is reportedly targeting 1 billion active users by next year.

These strategies aim to strengthen OpenAI’s position against rivals Anthropic and Elon Musk’s xAI, the latter of which is considered a “fierce competitor” by Sam Altman. Additionally, the company is looking to capture a larger share of the generative AI market, which could be worth over $1 trillion in the next decade. Altman also revealed that his company has not asked investors not to invest in its competitors. However, those who choose to do so would not have access to OpenAI’s “information rights,” such as the company’s roadmap and other materials.

The story continues

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Number of hedge fund owners: 51

AppLovin Corporation (NASDAQ:APP) is a leading marketing platform powered by artificial intelligence. On December 5, Stifel increased the company’s price target on AppLovin from $250 to $435 and maintained a Buy rating on the stock. The analyst told investors in a research note that the company’s software platform business will benefit from AXON 2.0, an updated version of Applovin’s AI-powered advertising technology software. AXON 2.0 provides a competitive advantage by leveraging data from the company’s market-leading brokerage platform to improve the accuracy of its prediction algorithms used by AppDiscovery. The company also expressed increasing confidence in AppLovin’s expansion into the e-commerce advertising market. The company will also focus on cost control, which is expected to increase its profit margins and increase cash flow.

Total APP takes 5th place on our list of AI stocks taking Wall Street by storm. While we recognize APP’s potential as an investment, we believe some AI stocks have greater prospects of delivering higher returns, and within a shorter time frame. If you’re looking for an AI stock that has more promise than APP but trades at less than 5x earnings, check out our report on it cheapest AI stock.

READ MORE: The 8 Best Wide Moat Stocks to Buy Now and the Top 30 AI Stocks According to BlackRock.

Disclosure: None. This article was originally published on Insider Monkey.