Investing.com -- Bank of America reiterated Applovin Corp (NASDAQ: APP ) as its top stock pick, saying the mobile adtech firm’s financial performance and growth outlook remain strong despite recent declines following a short seller report.

The brokerage highlighted multiple catalysts through the first half of 2025 to sustain AppLovin’s rally, citing superior profit margins and long-term growth projections that outpace industry peers.

It also pointed to the company’s expanding role in transforming mobile gaming into an e-commerce advertising platform.

BofA sees the recent share price drop as a buying opportunity, noting that AppLovin now trades at a discount to peers despite expected EBITDA growth of 51% through 2026. It maintained a price target of $580, arguing that any valuation discount should fade as investors gain clarity on the company’s business model.

AppLovin’s CEO addressed what the firm called inaccuracies in the short seller report during a Feb. 26 call with analysts and in a blog post. CEO emphasized that the company’s auction process is fair, with safeguards including a Big Four audit to ensure compliance, and denied claims of ad fraud.