AppLovin stock price target raised to $547 from $483 at BTIG on Axon Ads Manager launch

Published 07/08/2025, 11:28
AppLovin stock price target raised to $547 from $483 at BTIG on Axon Ads Manager launch

Investing.com - BTIG raised its price target on AppLovin Corp (NASDAQ:APP) to $547 from $483 while maintaining a Buy rating following the company’s second-quarter results. The company has demonstrated remarkable performance, with InvestingPro data showing a 481% return over the past year and an impressive gross profit margin of 77.72%.

The firm noted that while Q2 results were slightly ahead of BTIG’s expectations and in line with market consensus, the more significant development was confirmation of the launch and expansion date for the company’s self-serve ad product, "Axon Ads Manager," which had become a source of concern in recent months.

BTIG highlighted that AppLovin is launching the product during the seasonally strongest quarter when approximately 45% of annual advertising budgets are deployed. The company is also expanding its marketer base through a referral program and extending reach to non-US users in Canada and Western Europe, allowing existing marketers to scale spending internationally.

The gaming business remains strong, with BTIG estimating 8.9% quarter-over-quarter growth in Q3, while supply within the MAX platform continues to grow at a low-double-digit rate. The firm also noted that AppLovin has begun exploring non-gaming supply partnerships, with potential supply increases starting in the first half of 2026.

BTIG maintained AppLovin as a "Top Pick," citing an attractive setup with non-gaming growth beginning to take shape in late 2025 and beyond, along with substantial potential for upward earnings revisions.

In other recent news, AppLovin Corp reported its second-quarter 2025 earnings, revealing a notable earnings per share (EPS) of $2.39, which exceeded expectations by 22.56%. Despite this EPS success, the company’s revenue was slightly below projections, coming in at $1.26 billion compared to the anticipated $1.28 billion. Analysts have responded to these results with adjustments to their stock price targets. Goldman Sachs increased its price target for AppLovin to $445, maintaining a Neutral rating, citing strong advertising revenue following the company’s divestiture of its Apps business. Meanwhile, Wolfe Research raised its price target to $425, maintaining an Outperform rating, highlighting the company’s 77% revenue growth, which surpassed guidance by 4.5%. Both firms attributed the positive outlook to AppLovin’s performance in mobile gaming advertising and the success of its AXON 2.0 platform. These developments underscore the company’s strong advertising revenue performance and strategic business adjustments.

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