Scotiabank Raises AppLovin (APP) PT to $575 Following Strong Earnings

AppLovin Corporation (NASDAQ:APP) is one of the best growth stocks to buy for the next 2 years. On August 28, Scotiabank raised the firm’s price target on AppLovin to $575 from $450, while maintaining an Outperform rating on the shares. The firm expects to see margin improvements as management optimizes its cost structure in the long term.

Scotiabank Raises AppLovin (APP) PT to $575 Following Strong Earnings

Prior to this, AppLovin Corporation reported a revenue of $1.259 billion, which was a 77% increase compared to the $711 million reported in the same quarter of 2024. For the first 6 months of 2025, revenue was $2.418 billion, which was a 74% increase from the $1.389 billion in H1 2024. The company’s net income saw an increase of 164% year-over-year, reaching $820 million, up from $310 million in Q2 2024.

During Q2 2025, AppLovin completed the sale of its Apps business to Tripledot Studios for $400 million in cash and a 20% equity stake in Tripledot. The company also demonstrated strong cash flow and shareholder returns, with net cash from operating activities reaching $772 million and free cash flow at $768 million for the quarter.

AppLovin Corporation (NASDAQ:APP) engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It operates through 2 segments: Advertising and Apps.

While we acknowledge the potential of APP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than APP and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.