AppLovin Stock Gains Bullish New Target Following Strong Year

AppLovin Corporation (NASDAQ: APP) is experiencing increased bullish sentiment from Wall Street, buoyed by a year that saw its stock price increase by 108.24%. This performance underscores the company's strategic initiatives and robust financial results, attracting significant attention from market analysts.

The stock is currently trading at $666.9 in the pre-market, representing a 0.26% dip from the previous close. The bullish target reflects growing confidence in AppLovin's position within the ad tech sector, especially regarding mobile gaming and its expanding e-commerce performance channel. 

Evercore ISI initiated coverage of AppLovin with an “Outperform” rating and an $835 price target.

The firm identifies AppLovin as the “dominant” ad tech platform for mobile gaming, with an emerging e-commerce presence. This analysis anticipates combined mobile gaming and e-commerce ad spend to sustain revenue and EBITDA compound annual growth rates exceeding 30% from 2025 to 2028.

Morgan Stanley also holds an optimistic outlook, having raised its price target to $750 with an “Overweight” rating in September. This optimism is partly fueled by the anticipated launch of Axon Ads Manager, a self-serve tool designed for non-gaming advertisers, which is expected to unlock new ad budgets.

Deutsche Bank initiated coverage with a “Buy” rating and a $705 price target, citing AppLovin's “best-in-class” advertising technology. The bank projects revenue growth between 20% and 30% in the coming years, driven by the company’s strong position in the ad tech space and its expansion into e-commerce.

Stellar Q3 Earnings

AppLovin's Q3 2025 earnings significantly exceeded expectations. The company reported revenue of $1.41 billion, a 68% year-over-year increase, surpassing analysts' estimates of $1.34 billion. Earnings per share rose 96% to $2.45, exceeding the consensus estimate of $2.38. The company attributed this performance to the enhanced capabilities of its Axon Advertising platform.

Subsequent to the earnings report, Goldman Sachs increased its price target to $720, maintaining a “Hold” rating, while BTIG raised its target to $705, reiterating a “Buy” rating. Analysts highlighted AppLovin's solid ad revenue growth and successful expansion of its non-gaming business.

The introduction of Axon Ads Manager is a strategic move to diversify revenue streams by attracting a broader range of advertisers. AppLovin’s expansion into the e-commerce sector is also anticipated to be a significant growth driver, contributing substantially to future revenue and EBITDA growth.

Following a year in which the sock has added 108% is never easy, yet Wall Street continues to expect more. AppLovin's strategic emphasis on broadening its ad tech platform beyond mobile gaming into e-commerce, combined with positive financial results and favourable analyst coverage, has reinforced investor confidence, and will likely shape sentiment going forward.