AppLovin (APP) shares rose 3% following an upgrade from Edgewater Research. The firm raised its rating to Outperform from Neutral.
Unity Software shares also climbed 5% after receiving a similar upgrade. Edgewater analyst Joe Wittine attributed the move to a significant industry pivot toward ad-supported monetization in the mobile ecosystem.
The gaming industry is increasingly adopting in-app advertising and hybrid monetization models. This shift helps absorb growing ad demand and alleviates investor concerns regarding the cannibalization of in-app purchase revenue.
Edgewater highlighted AppLovin’s leadership in the sector through its MAX monetization ecosystem.