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Investing.com -- RBC Capital Markets initiated coverage of AppLovin with an Outperform rating and $700 price target, given company’s platform positioning in performance advertising and marketing technology.
Analysts highlighted AppLovin’s focus on return on ad spend (ROAS) and attribution, which they say allows advertisers to shift spending from general marketing budgets to measurable outcomes.
This creates what RBC described as an “unlimited total addressable market,” with spending likely to continue as long as ROAS thresholds are met.
The company’s divestiture of its apps business has expanded its platform beyond mobile gaming into e-commerce, particularly direct-to-consumer (DTC) companies.
RBC said this diversification should support higher pricing and revenue durability, while the largely fixed-cost model allows top-line gains to flow through to profitability and free cash flow.
Analysts noted a resilient performance in 2025 despite uneven macro conditions, with secular trends in personalized marketing, generative content, and creative automation providing additional tailwinds.
RBC values AppLovin using a 43x EV/EBITDA multiple on its 2026 estimates, slightly above peers growing at least 20%, reflecting the company’s strong revenue growth and profitability.