14 Analysts Assess AppLovin: What You Need To Know

Ratings for AppLovin APP were provided by 14 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $492.64, along with a high estimate of $650.00 and a low estimate of $335.00. This current average has increased by 19.26% from the previous average price target of $413.07.

Investigating Analyst Ratings: An Elaborate Study

The standing of AppLovin among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |James Callahan |Piper Sandler |Lowers |Overweight | $425.00|$575.00 | |Matthew Cost |Morgan Stanley |Lowers |Overweight | $350.00|$470.00 | |Alec Brondolo |Wells Fargo |Lowers |Overweight | $386.00|$538.00 | |Rob Sanderson |Loop Capital |Raises |Buy | $650.00|$450.00 | |Jason Bazinet |Citigroup |Raises |Buy | $600.00|$460.00 | |Martin Yang |Oppenheimer |Raises |Outperform | $560.00|$480.00 | |Mike Hickey |Benchmark |Raises |Buy | $525.00|$375.00 | |Cory Carpenter |JP Morgan |Raises |Neutral | $475.00|$325.00 | |James Callahan |Piper Sandler |Raises |Overweight | $575.00|$400.00 | |John Hodulik |UBS |Raises |Buy | $630.00|$440.00 | |Omar Dessouky |B of A Securities |Raises |Buy | $580.00|$375.00 | |Eric Sheridan |Goldman Sachs |Raises |Neutral | $335.00|$220.00 | |John Hodulik |UBS |Raises |Buy | $440.00|$315.00 | |Alec Brondolo |Wells Fargo |Raises |Overweight | $366.00|$360.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AppLovin. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of AppLovin compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of AppLovin's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of AppLovin's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on AppLovin analyst ratings.

Delving into AppLovin's Background

AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max, and gaming studios, which develop mobile games. AppLovin announced in February 2025 its plans to divest from the lower-margin gaming studios to focus exclusively on the ad tech platform. AppLovin's primary tool for future growth is Axon 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.

Key Indicators: AppLovin's Financial Health

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Over the 3M period, AppLovin showcased positive performance, achieving a revenue growth rate of 44.01% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 43.61%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): AppLovin's ROE stands out, surpassing industry averages. With an impressive ROE of 59.04%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): AppLovin's ROA stands out, surpassing industry averages. With an impressive ROA of 10.58%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: AppLovin's debt-to-equity ratio surpasses industry norms, standing at 3.26. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.