Deutsche Bank Bullish on AppLovin (APP) After Sharp Pullback Following Project Genie Announcement

AppLovin Corporation (NASDAQ:APP) ranks among the best high growth high margin stocks to buy now. Deutsche Bank stated on February 2 that it thinks AppLovin Corporation (NASDAQ:APP)’s risk-reward profile has “meaningfully improved” after a considerable stock selloff brought on by Google’s Project Genie announcement. The news raised investor worries about potential disruptions for game engine developers, platforms, and publishers, AppLovin Corporation (NASDAQ:APP) being among them.

According to Deutsche Bank analysts, Project Genie has the potential to streamline game development by serving as a “generative game engine,” enabling individuals with basic coding skills to create games and perhaps cutting development time for gaming companies.

Despite market fears, Deutsche Bank believes it is “far too early” to predict how disruptive Genie could end up being. The firm anticipates that Genie will improve the game creation process and boost game content generation, which “should ultimately serve to enhance the advertising businesses for both Unity and Applovin.”

AppLovin Corporation (NASDAQ:APP) is a software-based advertising and app monetization company. It operates through two segments, Advertising and Apps. The company also develops and publishes free-to-play mobile games through its studios and partners.

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Disclosure: None. This article is originally published at Insider Monkey.