AppLovin PT Cut 42% to $465, Maintains Outperform on Industry Headwinds
Wedbush lowered AppLovin’s price target from $800 to $465 on February 5, citing softer industry sentiment, regulatory headwinds and competitor e-commerce data. The firm maintained an Outperform rating, highlighting AppLovin’s leadership in mobile gaming advertising and strategic expansion into e-commerce and Connected TV for long-term resilience.
1. Price Target Reduction and Rationale
On February 5, Wedbush cut its price target on AppLovin from $800 to $465, reflecting a 42% reduction driven by softer industry sentiment, mounting regulatory headwinds and recent competitor data in the e-commerce sector.
2. Rating Maintenance and Strategic Outlook
Despite the cut, Wedbush kept an Outperform rating, citing AppLovin’s dominant position in mobile gaming advertising and confidence that its expansion into e-commerce and Connected TV will safeguard growth against competitive threats.
3. Divergent Analyst Views and E-commerce Projections
On January 26, Needham upgraded AppLovin to Buy with a $700 target, boosting its 2026 e-commerce sales estimate to $1.45 billion from $1.05 billion and forecasting that the self-service platform launch and advertiser spending will drive revenue growth.