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Morgan Stanley maintained its overweight rating, which is a signal that they expect the stock to perform better than the broader market. Their new price target of $450 sits well above the current price of about $328. While this specific target is lower than the average analyst estimate of $532, it reflects continued confidence in the company's shift toward high-margin advertising software. This follows a similar move by BTIG last week, as analysts adjust their expectations for the stock's growth path.
Source: Morgan Stanley
BTIG lowered its price target for AppLovin from $408 to $396 on Tuesday. While the firm nudged its target down, it still maintains a buy rating on the stock. This move is a minor adjustment rather than a change in view on the company's prospects. Other analysts remain more optimistic, with the average target across all firms sitting much higher at $538. Even with this small reduction, BTIG's new target is still about 25 percent above where the stock trades today.
Source: BTIG
Evercore ISI set a price target of $510 for the stock on Tuesday. This is significantly higher than where the stock trades today, though it sits slightly below the average analyst target of $526.
The firm is one of several that have recently set targets far above the current price. It suggests a view that the company's shift into e-commerce advertising will drive more value than the market is currently pricing in.
Source: Evercore ISI
Needham started tracking the company this week with a target of $475, which is about 50 percent higher than where the stock trades today. The firm is the latest to weigh in after a volatile month for the stock, and the average analyst target now sits at roughly $527. This move suggests that while the stock has struggled recently, analysts still see significant value in the company's shift to a pure software model. The focus remains on whether its AI-driven advertising tools can successfully win customers in the broader e-commerce market beyond mobile gaming.
Source: Needham
Jefferies reported on Thursday that the mood among investors has turned mostly negative. In a summary of recent debates and conversations, the firm noted that many are struggling to find a clear reason to be optimistic about the stock for the rest of the year.
The main concern is whether the company will face a sharp downturn similar to what other digital advertising firms have seen in the past. This skepticism matters because the stock's value relies on the idea that its AI engine can keep winning market share in the massive e-commerce world. If that confidence breaks, it becomes harder for the stock to win back its recent losses.
Source: Proactive Investors
Management has a perfect two-year streak of meeting or exceeding expectations. The business is consistently outrunning forecasts even as it grows revenue by more than 50 percent.
| Expectation | |
|---|---|
| EPS | $4.04 |
| Revenue | $2.07B |