AppLovin (APP) stock has rallied 85% year-to-date, driven by the mobile ad tech company’s impressive growth and optimism about the company’s artificial intelligence (AI)-powered Axon 2 engine. Most Wall Street analysts remain bullish on APP stock and see further upside.
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Interestingly, several analysts are optimistic about AppLovin stock despite an investigation by the U.S. Securities and Exchange Commission (SEC) into the company’s data-collection practices. According to a Bloomberg report, the SEC probe was triggered by a whistleblower complaint and multiple short-seller reports.
AppLovin offers end-to-end software and AI solutions to help businesses reach, monetize, and grow their audiences. The company reported a 68% year-over-year jump in Q3 2025 revenue to $1.41 billion and a 96% surge in earnings per share (EPS) to $2.45.
Analysts Are Upbeat About AppLovin’s Growth Story
Reacting to the upbeat Q3 print, Benchmark analyst Mike Hickey reiterated a Buy rating on AppLovin stock and increased the price target to $700 from $640. The analyst stated that the “exceptional” Q3 performance confirms APP’s position as one of the most “profitable and fastest-growing companies” in the ad-tech space. Hickey highlighted solid top-line growth and a 79% year-over-year rise in Q3 adjusted EBITDA to about $1.16 billion, yielding an impressive 82% margin.
The analyst also noted APP’s Q3 free cash flow of $1.05 billion, which reflected the company’s efficiency and scalability. Hickey is encouraged by the early reports on the adoption of APP’s self-serve Axon Ads Manager (launched on October 1) and expansion beyond mobile gaming into e-commerce, with advertiser spend growing about 50% week over week. He is also impressed with the Q4 outlook, which indicates continued momentum in AppLovin’s business. Overall, Hickey is bullish on APP stock, noting continued model improvement, disciplined expense control, and increasing AI-driven monetization.
Additionally, Bank of America analyst Omar Dessouky reiterated a Buy rating on AppLovin stock with a price target of $860. The 5-star analyst noted that management attributed the Q3 beat to incremental improvements to the gaming model and said the e-commerce contribution remained small (Bank of America estimated Q3 e-commerce revenue of $140 million). “That e-commerce would not move the needle was well known pre-print,” said Dessouky.
Dessouky also noted management’s commentary about the difficulty in projecting Q4 e-commerce net revenue due to the “influx of new advertisers” since the launch of the self-serve offering. He added that AppLovin’s outlook reflects favorable mobile game advertiser seasonality, a contribution from international audiences, and continued model enhancements.
Is APP a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on AppLovin stock based on 17 Buys and three Hold recommendations. The average APP stock price target of $749.28 indicates about 25% upside potential.
