AppLovin Corp (NASDAQ:APP) shares jumped 7% Monday after Jefferies analyst James Heaney reiterated a Buy rating with an $860 price target, calling the stock’s 39% year-to-date decline "a great buying opportunity." The mobile technology company’s shares closed Friday at $406.70, down 40% year-to-date as investors expressed concerns about potential AI impacts on its business model.

Heaney expects AppLovin to deliver over 50% top-line growth by fiscal year 2026, despite recent fears regarding CloudX, Meta Audience Network, and Google Genie. The analyst believes these concerns are "overblown risks" that have created a dislocation in the stock price. AppLovin is currently trading at 15 times fiscal year 2027 EBITDA estimates.

In his research note, Heaney expressed confidence that AppLovin will deliver "a significant revenue beat" in the fourth quarter, based on positive survey results and expert checks on both the company’s gaming and e-commerce businesses. The analyst’s bullish stance comes as AppLovin continues to expand its mobile technology platform and gaming portfolio.

Quick Fact: AppLovin stock closed Friday at $406.70, down 40% year-to-date.