AppLovin stock price target raised to $425 from $410 at Wolfe Research

Published 07/08/2025, 11:30
AppLovin stock price target raised to $425 from $410 at Wolfe Research

Investing.com - Wolfe Research raised its price target on AppLovin Corp (NASDAQ:APP) to $425.00 from $410.00 on Thursday, while maintaining an Outperform rating on the stock. The new target represents potential upside from the current price of $390.57, with analyst targets ranging from $250 to $650. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The price target increase follows AppLovin’s solid second-quarter 2025 results, which showed revenue growth of 77%, exceeding guidance by 4.5%. This outperformance was primarily driven by strength in mobile gaming advertising. The company maintains impressive gross profit margins of 77.7% and has delivered a remarkable 481% return over the past year. InvestingPro subscribers can access 15+ additional key insights about APP’s performance.

The company reported EBITDA of $1,108 million for the quarter, coming in 3.9% ahead of guidance. Most of the 9% sequential growth originated from mobile gaming advertising, though AppLovin continues to see positive momentum in e-commerce despite taking a more selective approach to onboarding new advertisers.

During the quarter, AppLovin increased the minimum GMV requirement for e-commerce customers to $100 million to support the development of its e-commerce offering before launching self-serve capabilities in the first half of 2026.

The company also announced plans to launch a marketing referral motion for large advertisers on its e-commerce offering, which will be renamed AXON Ad Manager, starting October 1st. AppLovin aims to achieve strong mid-market advertiser adoption before expanding internationally and launching a full-scale self-serve platform.

In other recent news, AppLovin Corp reported its earnings for the second quarter of 2025, highlighting a notable earnings per share (EPS) beat while experiencing a slight revenue miss. The company’s EPS was $2.39, surpassing the anticipated $1.95, resulting in a surprise of 22.56%. However, revenue was slightly below expectations, at $1.26 billion compared to the forecasted $1.28 billion, marking a -1.56% surprise. Despite the revenue shortfall, the significant EPS beat underscores a positive aspect of the company’s financial performance. These developments reflect the latest updates from AppLovin Corp, providing insights into its recent financial outcomes.

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