Several Wall Street brokerages responded positively to AppLovin’s earnings, adjusting their price targets higher on the growth potential of its new e-commerce product.
AppLovin Corp. (APP) is gaining support from Wall Street analysts after the second-quarter earnings report.
Several firms, including Piper Sandler, Morgan Stanley, and JPMorgan, responded positively to AppLovin’s earnings, adjusting their price targets higher based on the growth potential of its new e-commerce product and continued strength in gaming.
On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ (95/100) territory, with message volume shifting to ‘extremely high’ (91/100) from ‘high’ levels in 24 hours.
AppLovin stock traded over 12% higher on Thursday mid-morning. The stock saw a 717% increase in user message count in 24 hours, as of Thursday morning. Stocktwits users praised the company’s earnings.
Piper Sandler raised its price target on the stock to $500 from $470, maintaining an ‘Overweight’ rating, as per TheFly. The firm cited the strength in AppLovin’s Q2 earnings, as well as optimism surrounding the e-commerce tool’s potential to generate revenue momentum.
AppLovin said that its referral-based, self-serve e-commerce tool will roll out in early October 2025, with general availability scheduled for the first half of 2026. “On October 1, 2025, we plan to open the AXON ads manager on a referral basis, perfectly timed for the holiday season,” said CEO Adam Foroughi in the Q2 earnings call.
Morgan Stanley also lifted its target to $480 from $460 and reaffirmed an ‘Overweight’ rating. The brokerage pointed to the e-commerce initiative as a ‘key catalyst,’ predicting it could become a major driver of upward earnings revisions in the future.
JPMorgan boosted its target to $425 from $400 while holding a ‘Neutral’ rating. The firm acknowledged AppLovin’s beat on Q2 and a stronger-than-expected Q3 outlook. AppLovin stock gained over 36% year-to-date and over 558% in the last 12 months.
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