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Forecasting The Future: 17 Analyst Projections For AppLovin
During the last three months, 17 analysts shared their evaluations of AppLovin (NASDAQ:APP), revealing diverse outlooks from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 8 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 3 | 4 | 2 | 0 | 0 |
| 3M Ago | 1 | 3 | 2 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for AppLovin, presenting an average target of $422.12, a high estimate of $530.00, and a low estimate of $270.00. Experiencing a 7.09% decline, the current average is now lower than the previous average price target of $454.35.
Diving into Analyst Ratings: An In-Depth Exploration
In examining recent analyst actions, we gain insights into how financial experts perceive AppLovin. The following summary 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 |
|---|---|---|---|---|---|
| Matthew Cost | Morgan Stanley | Raises | Overweight | $460.00 | $420.00 |
| Cory Carpenter | JP Morgan | Raises | Neutral | $400.00 | $355.00 |
| Eric Sheridan | Goldman Sachs | Raises | Neutral | $435.00 | $335.00 |
| John Hodulik | UBS | Raises | Buy | $475.00 | $450.00 |
| James Callahan | Piper Sandler | Raises | Overweight | $455.00 | $425.00 |
| Cory Carpenter | JP Morgan | Raises | Neutral | $355.00 | $270.00 |
| James Heaney | Jefferies | Raises | Buy | $530.00 | $460.00 |
| Matthew Cost | Morgan Stanley | Raises | Overweight | $420.00 | $350.00 |
| Martin Yang | Oppenheimer | Lowers | Outperform | $500.00 | $560.00 |
| Alec Brondolo | Wells Fargo | Raises | Overweight | $405.00 | $386.00 |
| Mike Hickey | Benchmark | Maintains | Buy | $525.00 | $525.00 |
| Cory Carpenter | JP Morgan | Lowers | Neutral | $270.00 | $475.00 |
| Eric Sheridan | Goldman Sachs | Lowers | Neutral | $335.00 | $500.00 |
| John Hodulik | UBS | Lowers | Buy | $450.00 | $630.00 |
| 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 |
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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AppLovin compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of AppLovin's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of AppLovin's market position. Stay informed and make well-judged 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.
Unraveling the Financial Story of AppLovin
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: AppLovin's remarkable performance in 3M is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 40.25%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: AppLovin's net margin excels beyond industry benchmarks, reaching 38.83%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 69.21%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): AppLovin's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 9.96%, the company showcases efficient use of assets and strong financial health.
Debt Management: AppLovin's debt-to-equity ratio stands notably higher than the industry average, reaching 6.45. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Significance of Analyst Ratings Explained
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
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.