On January 13, Morgan Stanley raised its price target for AppLovin Corporation (NASDAQ:APP) from $750 to $800 while keeping an 'Overweight' rating on the stock. TheFly reported this adjustment indicates a potential upside of nearly 31%.
In a note on the North America Internet group, the firm stated that 2026 will be "thematically similar" to 2025 for the internet sector. Companies with significantly positive return on invested capital from generative AI or GPU-enabled technologies are expected to be rewarded by the market. Meanwhile, subsectors facing disruption uncertainty, such as ridesharing from autonomous vehicles, e-commerce, travel, and smaller, less proven advertising platforms, will likely trade at lower multiples.
The following day, Robert Coolbrith of Evercore ISI initiated coverage on AppLovin with an 'Outperform' rating and a price target of $835. Coolbrith described the company's advertising technology platform for mobile gaming as "dominant." He anticipates spending in mobile gaming and e-commerce advertising will sustain revenue and EBITDA compound annual growth rates exceeding 30% from 2025 through 2028.
AppLovin Corporation, based in California and founded in 2011, operates a software-based platform that helps advertisers market their content more effectively. The company's business is divided into two segments: Advertising and Apps.