| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
AppLovin Corp (NASDAQ:APP) delivered yet another strong quarter, fueled by the success of its artificial intelligence-driven AXON 2.0 platform and the early momentum of its new self-serve eCommerce portal.
The company is generating industry-leading profitability with roughly 85% incremental adjusted EBITDA margins, while expanding its reach beyond gaming and deepening its push into eCommerce and AI-powered ad optimization.
Also Read: AppLovin Could Turn Mobile Games Into The Next Big E-Commerce Playground, Says Analyst
Goldman Sachs analyst Eric Sheridan maintained a Neutral rating on AppLovin and raised the price forecast from $630 to $720.
Sheridan said AppLovin delivered another strong quarter, driven by robust advertising revenue growth across both gaming and non-gaming segments, powered by its AXON 2.0 platform.
The analyst commented that management highlighted three core themes, namely, continued advertising strength, promising early results from the new self-serve eCommerce portal, and sustained high incremental margins despite selective investments in cloud hosting and customer acquisition.
He illustrated that AppLovin's early eCommerce tests signal a major long-term opportunity to extend its auction platform beyond gaming, with scaling expected to accelerate through 2026 and beyond.
Sheridan emphasized the company's ability to maintain ~85% incremental adjusted EBITDA margins even as it reinvests in platform expansion.
The analyst said that investor focus in the near term will likely center on how quickly the eCommerce business scales, but over the long term, AppLovin remains well-positioned to deliver above-average growth and strong margins within the broader digital advertising and mobile gaming landscape.
He underlined several positives from the quarter, including revenue and adjusted EBITDA exceeding guidance, a strong product roadmap led by the self-serve platform launch, and an expanded $3.3 billion share repurchase authorization following $500 million in buybacks during the third quarter.
Sheridan also pointed out that while eCommerce revenue growth remains modest in fourth-quarter guidance, its contribution is expected to scale meaningfully next year.
Sheridan projects fourth-quarter revenue of $1.59 billion (up from prior forecast of $1.52 billion), and GAAP EPS of $2.97 (up from previous guidance of $2.75).
APP Price Action: AppLovin shares were up 1.21% at $624.50 at the time of publication on Thursday, according to Benzinga Pro data.
Read Next:
Photo by CryptoFX via Shutterstock
Posted In: APP
