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Investing.com - JPMorgan has raised its price target on AppLovin Corp (NASDAQ:APP) to $425.00 from $400.00 while maintaining a Neutral rating following the company’s second-quarter earnings beat. The stock, currently trading at $411.12, sits between analysts’ targets ranging from $250 to $650, according to InvestingPro data.
AppLovin reported sequential revenue growth of 9% in the second quarter, exceeding its guidance of 3-5%. With impressive gross margins of 78.6% and year-over-year revenue growth of 45%, the company deliberately limited onboarding of new e-commerce customers ahead of its self-serve platform launch, resulting in less upside compared to previous quarters.
The company plans to open its self-serve platform for referrals on October 1, with a global launch scheduled for the first half of 2026. Advertisers will also gain the ability to buy outside the United States beginning October 1. InvestingPro analysis reveals the company maintains a perfect Piotroski Score of 9, indicating strong financial health as it pursues this expansion.
AppLovin intends to implement a paid marketing strategy to recruit new advertisers after the global launch, departing from its historical organic and word-of-mouth approach. JPMorgan noted this strategy makes sense given AppLovin’s small base of a few thousand advertisers compared to millions of potential SMB customers.
JPMorgan has increased its 2025 revenue forecast for AppLovin by 6% and adjusted EBITDA by 5%, reflecting both the second-quarter performance and the anticipated self-serve platform opening to referrals in the fourth quarter.
In other recent news, AppLovin Corp reported impressive second-quarter results, with a 77% year-over-year revenue growth that surpassed consensus estimates by 300 basis points. The company’s adjusted EBITDA also saw a significant increase of 95% year-over-year, exceeding expectations by 300 basis points. Following these results, Loop Capital reiterated its Buy rating with a price target of $650, and UBS maintained its Buy rating with a $540 price target, citing better-than-expected gaming-related trends. BTIG raised its price target for AppLovin to $547, highlighting the launch and expansion of the Axon Ads Manager as a notable development. Goldman Sachs adjusted its price target to $445, pointing to strong advertising revenue performance after AppLovin’s divestment of its Apps business. Wolfe Research also increased its price target to $425, attributing the rise to robust mobile gaming advertising revenue. These developments reflect positive analyst sentiment and strategic advancements for AppLovin.
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