AppLovin Gets $775 Price Target, Eyes 5×–10× E-Commerce Market by H1
Scotiabank raised AppLovin’s price target from $750 to $775 after Q4 revenue, EBITDA and EPS all beat expectations, and Needham reiterated its Buy rating with a $700 target while lifting 2026 estimates on stronger e-commerce demand. Raymond James highlighted AppLovin among six software names primed for a rebound. At a Morgan Stanley conference, management projected a H1 2026 launch of its e-commerce ad platform into a market 5×–10× gaming size and upheld a 20%–30% gaming-ads growth target.
1. Q4 Results and Price Target Hike
Following Q4 results that beat revenue, EBITDA and EPS projections, Scotiabank raised its price target on AppLovin from $750 to $775, while Needham reiterated its Buy rating with a $700 target and increased 2026 revenue estimates based on rising e-commerce ad demand.
2. Software Industry Outlook
Raymond James identified software stocks stabilizing near technical support and highlighted AppLovin among six major names poised for a rebound after a two-month decline in the S&P 500 Software Index.
3. E-Commerce Advertising Expansion
Management revealed at a Morgan Stanley conference that AppLovin will broaden its ad platform beyond gaming with a full rollout in H1 2026, targeting an addressable market estimated at 5×–10× the size of its current gaming segment.
4. Gaming Ads Growth and Metrics
AppLovin reaffirmed its benchmark of 20%–30% growth in gaming ads, supported by its 1 billion+ daily active users and a 1.3% average conversion rate, and highlighted ongoing model enhancements and recursive learning to drive further efficiency.