Across the recent three months, 12 analysts have shared their insights on AppLovin (NASDAQ:APP), expressing a variety of opinions spanning from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 9 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 2 | 0 | 0 | 0 |
| 2M Ago | 1 | 4 | 1 | 0 | 0 |
| 3M Ago | 0 | 2 | 0 | 0 | 0 |
Analysts have recently evaluated AppLovin and provided 12-month price targets. The average target is $510.33, accompanied by a high estimate of $725.00 and a low estimate of $425.00. This upward trend is evident, with the current average reflecting a 7.75% increase from the previous average price target of $473.64.
Interpreting Analyst Ratings: A Closer Look
The perception of AppLovin by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Alicia Reese | Wedbush | Raises | Outperform | $725.00 | $620.00 |
| James Heaney | Jefferies | Raises | Buy | $615.00 | $560.00 |
| Nat Schindler | Scotiabank | Raises | Sector Outperform | $575.00 | $450.00 |
| Alec Brondolo | Wells Fargo | Raises | Overweight | $491.00 | $480.00 |
| Cory Carpenter | JP Morgan | Raises | Neutral | $425.00 | $400.00 |
| Nat Schindler | Scotiabank | Raises | Sector Outperform | $450.00 | $430.00 |
| Matthew Cost | Morgan Stanley | Raises | Overweight | $480.00 | $460.00 |
| Alec Brondolo | Wells Fargo | Raises | Overweight | $480.00 | $405.00 |
| James Callahan | Piper Sandler | Raises | Overweight | $500.00 | $470.00 |
| Clark Lampen | BTIG | Raises | Buy | $483.00 | $480.00 |
| Nat Schindler | Scotiabank | Announces | Sector Outperform | $430.00 | - |
| James Callahan | Piper Sandler | Raises | Overweight | $470.00 | $455.00 |
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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.
To gain a panoramic view of AppLovin's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on AppLovin analyst ratings.
Unveiling the Story Behind AppLovin
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. 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.
Unraveling the Financial Story of AppLovin
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 77.04% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: AppLovin's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 65.09%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): AppLovin's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 94.04%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): AppLovin's ROA excels beyond industry benchmarks, reaching 14.05%. This signifies efficient management of assets and strong financial health.
Debt Management: AppLovin's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.01, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding the Relevance of Analyst Ratings
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.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
Breaking: Wall Street's Next Big Mover
Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
