Sep. 27, 2025 at 9:44 AM ET5 min read

UBS Raises AppLovin Price Target to $810, Signals Growth

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Applovin Corporation stocks have been trading up by 5.48 percent, driven by strong investor confidence in its strategic initiatives.

Key Highlights

  • UBS recently lifted the price target for AppLovin to $810, emphasizing its leading position with prospects like Axon 2.0 and the company’s referral program.
  • The inclusion of AppLovin in the S&P 500 is anticipated to boost its visibility, leading to the stock’s nearly 12% surge.
  • Analysts back the stock with strong buy recommendations due to its impressive growth in mobile gaming, e-commerce, and self-serve platforms.
  • Wedbush has raised its price target to $725, driven by sustained market momentum and strategic expansion in various sectors.
  • Continued rise in user acquisition spending for mobile games supports optimistic market projections for AppLovin.

Technology industry expert:

Analyst sentiment – positive

Market Position & Fundamentals: AppLovin (APP) demonstrates impressive financial performance with robust profitability metrics, including an EBIT margin of 52% and a profit margin totalling 45.7%. Its revenue generation is strong at $4.7 billion, indicating a firm market position. However, its valuation appears stretched, evident by a high P/E ratio of 91.03 and a price-to-sales ratio of 40.73. The balance sheet shows resilience with a current ratio of 2.7, though leverage remains a concern with a total debt to equity of 3.01. The company’s high return on equity (245.07%) underscores efficient management and strong capital allocation, positioning it favorably against sector benchmarks.

Technical Analysis & Trading Strategy: AppLovin’s recent price action reveals a bullish trend, as reflected in a weekly high close on September 26 at $675, surpassing previous resistance levels. A consistent upward trajectory is maintained despite minor fluctuations near $640-$650 levels. The elevated volume accompanying price appreciation supports the upward momentum. Considering this bullish pattern, a viable trading strategy would be to enter long positions on pullbacks towards the $650-$655 range, targeting enclosures near or above the $675 resistance. Stop-loss orders should be positioned below $636, a recent support level, securing downside protection.

Catalysts & Outlook: AppLovin’s addition to the S&P 500 coupled with analyst upgrades significantly bolsters its growth outlook. Analyst targets ranging up to $810 are driven by strategic expansions in high-growth areas such as self-serve and e-commerce platforms, alongside comprehensive international outreach. The company’s AI-enhanced Axon 2.0 platform furthers its competence in ad monetization, elevating it above sector peers. New growth opportunities in non-gaming revenue streams suggest sustainable trajectory advancements. Relative to Technology benchmarks, AppLovin’s multifaceted expansion strategies accord it a competitive edge, underscoring a bullish long-term outlook. Appropriate price targets rest between $725-$810, with $640 serving as pivotal support.

Candlestick Chart

More Breaking News

Weekly Update Sep 22 – Sep 26, 2025: On Saturday, September 27, 2025 Applovin Corporation stock [NASDAQ: APP] is trending up by 5.48%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The latest financial metrics reveal that AppLovin is advancing robustly through its strategic initiatives, reflected in its product and market performance indicators. The stock closed at $675 on September 26, 2025, following an upward trajectory from $643.25 just days before, signalling investor confidence post S&P 500 inclusion. In terms of profitability, AppLovin shines with an 80.9% gross margin and an exceptional return on equity standing at 245.07%. These figures alone speak volumes about the company’s efficiency and strategic prowess in solidifying its market hold.

Financial reports highlight AppLovin’s diverse growth avenues, notably in revenues nearing $4.7B, marking a striking 56.86% revenue growth over five years. The operating margins and asset turnover ratios further reinforce a strong financial backbone. Price-to-earnings ratios suggest an expensive valuation relative to peers, but the solid profitability forecasts balance these concerns. The company’s lively cash flow generation attests to its robust operational capabilities, setting a promising outlook ahead.

AppLovin’s balance sheet is well-managed, with its long-term debt to capital ratio exhibiting sound financial leverage. Clearly, e-commerce and international penetration aspects are fueling company-wide excitement, reinforcing its revenue base and its innovative offerings like Axon 2.0.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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