Can AppLovin Stock Reach $860 in 2025?

AppLovin (APP) has been having a wonderful time on Wall Street this year, with its shares climbing solid double digits in 2025. The ad-tech leader has carved out a dominant spot in mobile gaming, helping apps attract users and drive revenue through its artificial intelligence (AI)-powered Axon engine and Max mediation platform. But it’s not just gaming that’s fueling the momentum.

AppLovin’s push into new frontiers, such as e-commerce, is adding another layer of excitement for investors. To top it off, the company has also achieved a major milestone this year with its inclusion in the prestigious S&P 500 Index ($SPX) just last month. With all eyes now on APP stock, analysts are also starting to pile in with bold calls.

Recently, Bank of America — after researching hundreds of AppLovin direct-to-consumer (DTC) e-commerce customers — declared that the platform is “likely to become a required channel in calendar year 2026.” Analyst Omar Dessouky raised his price target on APP stock from $580 to $860, setting a new Stree high in the process.

With AppLovin’s growth engines firing on all cylinders, can APP stock make a run toward that ambitious target by the end of this year?

To put it simply, AppLovin is all about helping apps and brands grow smarter and faster. Founded in 2012, the California-based company has evolved from a mobile gaming developer into a comprehensive AI-powered advertising and marketing platform, enabling businesses across the mobile-app economy to reach the right audiences, drive engagement, and maximize revenue. At the heart of this growth is Axon, AppLovin’s proprietary AI engine.

Axon sifts through billions of real-time user interactions every day, using predictive models to pinpoint and bid on the ad impressions most likely to bring in high-value users. AppLovin is also expanding beyond mobile gaming as part of its broader strategy to diversify its revenue streams and reduce its reliance on the traditional gaming segment.

The company officially launched Axon Ads Manager on Oct. 1, a long-awaited self-service platform for non-gaming advertisers. While the rollout is initially on a referral-only basis, a full-scale global launch is planned for 2026. This tool gives e-commerce and other businesses a seamless way to join AppLovin’s ecosystem, harnessing Axon’s AI to automatically target the right consumers and drive purchases.

AppLovin’s market capitalization currently stands at around $192.8 billion. Although APP shares have certainly been on fire this year, recent headlines have added a bit of heat of a different kind. On Oct. 6, APP stock tanked 14% on reports that the company is under investigation by the U.S. Securities and Exchange Commission (SEC) over its data-collection practices.

The probe has sparked some investor uncertainty around AppLovin’s business operations and potential regulatory fallout. Still, APP stock’s long-term story remains impressive. Even with the recent dip, APP is up a staggering 76% in 2025 alone, far outpacing the S&P’s 11% year-to-date (YTD) gain. Looking further back, the stock has soared a massive 293% over the past year, leaving the broader index’s modest 13% return in the dust.

The ad-tech company’s latest financial performance has been quite impressive. AppLovin dropped its stronger-than-expected fiscal 2025 second-quarter earnings report on Aug. 6, sparking a notable 12% rally the very next trading session. Revenue jumped stunning 77% year-over-year (YOY) to $1.26 billion, surpassing analyst expectations of $1.21 billion as adoption of its AI-driven advertising tools gained momentum.

Profit growth was even more striking. Adjusted EBITDA nearly doubled to $1.02 billion, delivering an 81% margin, up from 72% a year ago. Net income surged a whopping 164% annually to $820 million, while EPS skyrocketed 168% to $2.39, beating projections by more than 20%. Cash generation remained strong, with $772 million from operations and $768 million in free cash flow, representing a 73% YOY increase.

Management also returned capital through a $341 million share repurchase and withholding program. Strategically, AppLovin closed the sale of its first-party Apps business to Tripledot Studios for $400 million in cash plus equity on June 30. Treated as discontinued operations, this move allows reported results to increasingly highlight AppLovin’s high-margin software and marketplace businesses, the areas that investors care about most.

Looking forward, AppLovin is guiding for Q3 revenue to range between $1.32 billion and $1.34 billion, while adjusted EBITDA is expected to land between $1.07 billion and $1.09 billion. The company also aims to maintain an adjusted EBITDA margin of 81% for the quarter.

Bank of America recently assigned a new $860 price target to APP stock, following research on approximately 400 of AppLovin’s DTC e-commerce clients, which has convinced analysts that AppLovin is on track to become a must-have channel. During its latest earnings call, CEO Adam Foroughi teased that the real excitement is only beginning with the opening of AppLovin’s self-service ad portal on a referral basis.

This platform is designed to onboard new advertisers beyond gaming, with a full-scale launch planned for the first half of 2026. BofA analyst Omar Dessouky expects the initiative to attract around 4,000 large advertisers across various industries, including apparel, beauty, and wellness. Bank of America also noted that, once fully launched, e-commerce ad targeting will improve rapidly, thanks to high-intent ads and strong category differentiation.

Overall, Wall Street is giving APP a big thumbs-up, with the stock carrying a consensus “Strong Buy” rating. Out of 24 analysts covering APP stock, 18 recommend a “Strong Buy,” one suggests a “Moderate Buy,” four issue a “Hold,” and one gives a “Strong Sell” rating, underscoring broad confidence in AppLovin’s growth story.

The average analyst price target of $628.68 suggests 10% potential upside from current levels. Meanwhile, Bank of America’s Street-high target of $860 points to a potential 51% rally, signaling that Wall Street sees plenty of room for APP to keep climbing.

On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

AppLovin (APP) has been having a wonderful time on Wall Street this year, with its shares climbing solid double digits in 2025. The ad-tech leader has carved out a dominant spot in mobile gaming, helping apps attract users and drive revenue through its artificial intelligence (AI)-powered Axon engine and Max mediation platform. But it’s not just gaming that’s fueling the momentum.

AppLovin’s push into new frontiers, such as e-commerce, is adding another layer of excitement for investors. To top it off, the company has also achieved a major milestone this year with its inclusion in the prestigious S&P 500 Index ($SPX) just last month. With all eyes now on APP stock, analysts are also starting to pile in with bold calls.

Recently, Bank of America — after researching hundreds of AppLovin direct-to-consumer (DTC) e-commerce customers — declared that the platform is “likely to become a required channel in calendar year 2026.” Analyst Omar Dessouky raised his price target on APP stock from $580 to $860, setting a new Stree high in the process.

With AppLovin’s growth engines firing on all cylinders, can APP stock make a run toward that ambitious target by the end of this year?

To put it simply, AppLovin is all about helping apps and brands grow smarter and faster. Founded in 2012, the California-based company has evolved from a mobile gaming developer into a comprehensive AI-powered advertising and marketing platform, enabling businesses across the mobile-app economy to reach the right audiences, drive engagement, and maximize revenue. At the heart of this growth is Axon, AppLovin’s proprietary AI engine.

Axon sifts through billions of real-time user interactions every day, using predictive models to pinpoint and bid on the ad impressions most likely to bring in high-value users. AppLovin is also expanding beyond mobile gaming as part of its broader strategy to diversify its revenue streams and reduce its reliance on the traditional gaming segment.

The company officially launched Axon Ads Manager on Oct. 1, a long-awaited self-service platform for non-gaming advertisers. While the rollout is initially on a referral-only basis, a full-scale global launch is planned for 2026. This tool gives e-commerce and other businesses a seamless way to join AppLovin’s ecosystem, harnessing Axon’s AI to automatically target the right consumers and drive purchases.

AppLovin’s market capitalization currently stands at around $192.8 billion. Although APP shares have certainly been on fire this year, recent headlines have added a bit of heat of a different kind. On Oct. 6, APP stock tanked 14% on reports that the company is under investigation by the U.S. Securities and Exchange Commission (SEC) over its data-collection practices.

The probe has sparked some investor uncertainty around AppLovin’s business operations and potential regulatory fallout. Still, APP stock’s long-term story remains impressive. Even with the recent dip, APP is up a staggering 76% in 2025 alone, far outpacing the S&P’s 11% year-to-date (YTD) gain. Looking further back, the stock has soared a massive 293% over the past year, leaving the broader index’s modest 13% return in the dust.

The ad-tech company’s latest financial performance has been quite impressive. AppLovin dropped its stronger-than-expected fiscal 2025 second-quarter earnings report on Aug. 6, sparking a notable 12% rally the very next trading session. Revenue jumped stunning 77% year-over-year (YOY) to $1.26 billion, surpassing analyst expectations of $1.21 billion as adoption of its AI-driven advertising tools gained momentum.

Profit growth was even more striking. Adjusted EBITDA nearly doubled to $1.02 billion, delivering an 81% margin, up from 72% a year ago. Net income surged a whopping 164% annually to $820 million, while EPS skyrocketed 168% to $2.39, beating projections by more than 20%. Cash generation remained strong, with $772 million from operations and $768 million in free cash flow, representing a 73% YOY increase.

Management also returned capital through a $341 million share repurchase and withholding program. Strategically, AppLovin closed the sale of its first-party Apps business to Tripledot Studios for $400 million in cash plus equity on June 30. Treated as discontinued operations, this move allows reported results to increasingly highlight AppLovin’s high-margin software and marketplace businesses, the areas that investors care about most.

Looking forward, AppLovin is guiding for Q3 revenue to range between $1.32 billion and $1.34 billion, while adjusted EBITDA is expected to land between $1.07 billion and $1.09 billion. The company also aims to maintain an adjusted EBITDA margin of 81% for the quarter.

Bank of America recently assigned a new $860 price target to APP stock, following research on approximately 400 of AppLovin’s DTC e-commerce clients, which has convinced analysts that AppLovin is on track to become a must-have channel. During its latest earnings call, CEO Adam Foroughi teased that the real excitement is only beginning with the opening of AppLovin’s self-service ad portal on a referral basis.

This platform is designed to onboard new advertisers beyond gaming, with a full-scale launch planned for the first half of 2026. BofA analyst Omar Dessouky expects the initiative to attract around 4,000 large advertisers across various industries, including apparel, beauty, and wellness. Bank of America also noted that, once fully launched, e-commerce ad targeting will improve rapidly, thanks to high-intent ads and strong category differentiation.

Overall, Wall Street is giving APP a big thumbs-up, with the stock carrying a consensus “Strong Buy” rating. Out of 24 analysts covering APP stock, 18 recommend a “Strong Buy,” one suggests a “Moderate Buy,” four issue a “Hold,” and one gives a “Strong Sell” rating, underscoring broad confidence in AppLovin’s growth story.

The average analyst price target of $628.68 suggests 10% potential upside from current levels. Meanwhile, Bank of America’s Street-high target of $860 points to a potential 51% rally, signaling that Wall Street sees plenty of room for APP to keep climbing.

On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com