AppLovin Shares Surge as Analysts Boost Price Targets

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The stock of advertising technology firm AppLovin continues its remarkable ascent, trading near record highs. This momentum received a significant boost following bullish endorsements from two prominent Wall Street firms, both expressing strong confidence in the company's future growth trajectory.

A fresh wave of optimism swept through the market on Thursday after analysts issued updated research. James Heaney of Jefferies raised his firm's price target to $860, the highest currently on Wall Street, from a previous $800. This new target suggests an upside potential of nearly 20% from recent trading levels. The upgrade was attributed to the robust performance of AppLovin's AXON advertising platform and an expectation that revenue growth will exceed 30% in the coming years.

In a concurrent move, The Benchmark Company increased its target to $775. Analyst Mike Hickey maintained his "Best Idea" rating for the stock, highlighting the company's strong momentum in e-commerce and the successful scaling of its self-service platform.

Strong Financial Performance Underpins Valuation

This analyst confidence is grounded in impressive fundamental results. For the third quarter of 2025, AppLovin reported a substantial 68% year-over-year revenue increase to $1.41 billion. This growth dramatically outpaces competitors like The Trade Desk, which reported 18% growth for a comparable period.

The company's strategic shift is paying clear dividends. Following the divestiture of its gaming division, AppLovin is now fully focused on its high-margin software platform. With an adjusted EBITDA margin above 80% and an operating cash flow that has nearly doubled, investors are increasingly valuing AppLovin as a pure-play AI advertising technology company. Management has further underscored its confidence by authorizing an expanded share repurchase program totaling $3.3 billion.

A Note of Caution Amid the Rally

Despite the powerful fundamental story, investors are advised to consider one notable factor. Over the past 90 days, company insiders have sold shares worth approximately $195 million. While such sales following a near 96% year-to-date stock surge can be part of normal portfolio diversification, the sheer volume warrants attention.

Looking Ahead to 2026

From a technical perspective, the shares, recently trading around €611.70, are within striking distance of their 52-week high. Fundamentally, the focus now shifts to 2026 and the planned expansion of the AXON platform into new areas such as Connected TV. Until the next quarterly results in February, broader market sentiment toward AI-related stocks is likely to be the primary driver of AppLovin's share price direction.