AppLovin (APP) Positioned for Ad Growth Beyond Gaming, Says Jefferies

AppLovin Corporation (NASDAQ:APP) is one of the AI Stocks in the Spotlight for InvestorsOn December 11, Jefferies raised its price target on the stock to $860.00 from $800.00 while maintaining a “Buy” rating. Analysts at the firm see strong ad growth potential for AppLovin, citing confidence in margin scalability and expansion beyond gaming.

Jefferies has deemed AppLovin as an “emerging leader in the mobile advertising market.” Three key factors support the firm’s bullish outlook. First, analysts see a near and medium-term upside to revenue estimates in the advertising business.

Second, they believe AppLovin may achieve a long-term adjusted EBITDA margin of 80%, highlighting its profitability potential. Finally, the firm believes that the company may expand beyond gaming, powering the “next leg of rev growth in FY26 and beyond.”

 “The extension into e-commerce and other beyond gaming verticals gives us confidence that the advertising business can maintain 30%+ growth over the next few years.”

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.

While we acknowledge the risk and potential of APP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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