Applovin’s prospects strong despite Apple’s new ad app attribution tool By Investing.com

Investing.com – Analysts at Macquarie reiterated their outperform rating for Applovin Corp (NASDAQ:) on Monday while addressing concerns around the impact of Apple’s (NASDAQ:) new app ad attribution tool.

Macquarie believes that the negative reaction in AppLovin’s stock following the unveiling of AdAttributionKit at Apple’s WWDC conference is a case of misplaced headline risk.

Analysts noted, “We think the overreaction by the market presents a buying opportunity, as AppLovin continues to outperform mobile adtech peers with its AI-driven Axon 2 bidding technology.”

AdAttributionKit essentially replaces Apple’s SKAdNetwork4.0, offering improved features for measuring app ads.

Macquarie analysts argue that this update does not hinder AppLovin’s ability to buy ads, thereby dismissing concerns over its effect on the company’s performance.

The report from AppLovin’s Adjust division suggests that Apple’s new measurement capabilities are in compliance with the EU’s Digital Markets Act (DMA). It also indicates that AdAttributionKit provides significant improvements over SKAdNetwork4.0.

Despite the constant worry about Apple’s potential privacy-related moves in its app store, Macquarie analysts believe that just as Apple’s IDFA restrictions did not negatively impact AppLovin’s ad tech, AdAttributionKit will likewise not impede AppLovin’s ability to buy ads on apps in the App Store.

The firm reiterated its Outperform rating for Applovin Corp (NASDAQ:), with a price target of $115.