"AppLovin is undergoing a growth wave that is not expected to slow down anytime soon. 2025 revenue growth is expected to be 18.55% to $5.58 billion, accelerating to 33% year-over-year growth next year to $7.43 billion. EPS is expected to grow even faster, at almost 102% in 2025 and 50.9% in 2026. AppLovin benefits from the AI app boom, and it is also a beneficiary of the ongoing advertising boom that is also lifting companies like Meta."
"Its advertising engine uses machine learning to pick which ad to show in every mobile session, and this has boosted profits greatly. It is only getting more efficient, and I expect the stock to gain in parallel. APP stock has also performed well historically in November, second only to May. November is also a very good month for ads, and I expect APP stock to surge to another high of ~$800 by year-end."
AppLovin recovered from a post-COVID decline exceeding 90% and rose 351.4% over the past year. The stock fell over 18.3% from its late-September peak to an October 6 trough amid reports of an SEC investigation into data-collection practices, then rallied 7.8% after several financial firms called the selloff an overreaction, remaining down 11.3% over five days. Revenue is forecast at $5.58 billion in 2025 (18.55% growth) and $7.43 billion in 2026 (33% growth), with EPS expected to rise about 102% in 2025 and 50.9% in 2026. AppLovin benefits from AI-driven ad optimization and the broader advertising boom, improving efficiency and profits, and a roughly $800 year-end price target is projected based on historical seasonality.
Read at TalkMarkets
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