Wells Fargo Bullish on AppLovin (APP) After Strong Q3 Earnings Driven Primarily by Mobile Gaming

AppLovin Corporation (NASDAQ:APP) is one of the best QQQ stocks to buy according to Wall Street analysts. On November 7, Wells Fargo raised the firm’s price target on AppLovin to $721 from $633 and kept an Overweight rating on the shares. This sentiment was posted after the company released its Q3 2025 earnings call and reported another strong quarter. Wells Fargo believes that most of this performance was driven by mobile gaming, rather than web ads.

In Q3, the company experienced a rapid expansion of the MAX platform ecosystem, fueled by higher-quality ads and increased demand density. A key indicator of potential future growth is the observed 50% week-over-week growth in e-commerce customer spend, though the CEO, Adam Foroughi, noted this is early in the ramp-up phase. AppLovin’s strategy to enhance conversion rates revolves around model improvements and using AI technologies, including the nascent use of neural networks. A major focus is on expanding advertiser density to improve personalized advertising.

Wells Fargo Bullish on AppLovin (APP) After Strong Q3 Earnings Driven Primarily by Mobile Gaming

Furthermore, the company is in the early stages of developing GenAI-based creative tools to automatically create ad creatives. While this is expected to significantly increase conversion rates once fully implemented, the current early development phase means the full impact is still delayed. Applovin was able to make a revenue of $1.41 billion, which rose 17.26% year-over-year and exceeded Street estimates by $62.88 million. The company earned $2.45 per share, which also beat guidance by $0.06

AppLovin Corporation (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It operates through two 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.