AppLovin广告客户小组回顾：推动电商销售增长

James Heaney * | Equity Analyst(212) 336-1171 | jheaney@jefferies.comBrent Thill * | Equity Analyst(415) 229-1559 | bthill@jefferies.comEd Alter * | Equity Associate(212) 778-8702 | ealter@jefferies.comSalil Sanjiv * | Equity Associate(212) 284-8119 | ssanjiv@jefferies.com can open the ad platform to all advertisers. At 24x FY26E EBITDA (vs. JEF est. 38% 4YR EBITDACAGR), we believe the stock remains undervalued.Please see important disclosure information on pages 3 - 8 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. Company DescriptionAppLovinAppLovin's software solutions provide advanced tools for mobile app developers to grow their businesses by automating and optimizing the marketingand monetization of their apps. AppLovin additionally owns and operates its own mobile game portfolio using its software platform.Company Valuation/RisksAppLovinPrice target based on the average of our DCF analysis and 32x our FY26 adj. EBITDA estimate.Risks include further deterioration of mobile gaming spending and advertising demand from worsening macro conditions and further privacy changesfrom Apple, Google, and regulators impacting targeting. To the upside, a macro improvement would raise game spending and grow ad supply anddemand.Meta Platforms, Inc.Our price target of $700 is DCF-derived and implies 27x 2026E EPS. Risks include declines in user engagement, advertiser churn, and regulatory risk.Analyst Certification:I, James Heaney, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, Brent Thill, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, Ed Alter, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, Salil Sanjiv, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receivescompensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate, butvarious regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are publishedat irregular intervals as appropriate in the analyst's judgement.Investment Recommendation Record(Article 3(1)e and Article 7 of MAR)Recommendation PublishedRecommendation DistributedCompany Specific DisclosuresJames Heaney has a long position in Facebook.Explanation of Jefferies RatingsBuy - Describes securities that we expect to provide a total return (price appreciation plus yield) of 15% or more within a 12-month period.Hold - Describes securities that we expect to provide a total return (price appreciation plus yield) of plus 15% or minus 10% within a 12-month period.Underperform - Describes securities that we expect to provide a total return (price appreciation plus yield) of minus 10% or less within a 12-month period.The expected total return (price appreciation plus yield) for Buy rated securities with an average security price consistently below $10 is 20% or more within a 12-month period as these companies are typically more volatile than the overall stock market. For Hold rated securities with an average security price consistentlybelow $10, the expected total return (price appreciation plus yield) is plus or minus 20% within a 12-month period. For Underperform rated securities with anaverage security price consistently below $10, the expected total return (price appreciation plus yield) is minus 20% or less within a 12-month period.Please see important disclosure information on pages 3 - 8 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. May 14, 2025 , 21:56 ET.May 14, 2025 , 21:56 ET.3 NR - The investment rating and price target have been temporarily sus