Morgan Stanley Lifts AppLovin Corporation (APP) Target on AI-Led Growth Thesis
AppLovin Corporation (NASDAQ:APP) has been identified as one of the stocks with the best earnings growth potential for the next five years. Recently, Morgan Stanley raised the price target on AppLovin Corporation to $800 from $750, maintaining an ‘Overweight’ rating on the stock. This adjustment suggests a potential upside of nearly 31%.
According to Morgan Stanley, the internet sector in 2026 is expected to resemble 2025 thematically. Companies with significantly positive ROIC from GenAI or GPU-enabled technologies are likely to be rewarded by the market. On the other hand, subsectors facing disruption uncertainty, such as ridesharing from autonomous vehicles (AV), e-commerce, travel, and smaller ad platforms, may trade at lower multiples.
In a separate development, Robert Coolbrith from Evercore ISI initiated coverage on AppLovin Corporation with an ‘Outperform’ rating and a price target of $835. Coolbrith highlighted the company’s dominant ad tech platform for mobile gaming and anticipated that spending in mobile gaming and e-commerce ads would drive 30%-plus revenue and EBITDA compound annual growth rates from 2025 to 2028.
AppLovin Corporation, headquartered in California, focuses on building a software-based platform for advertisers to enhance their content marketing. The company operates through two segments: Advertising and Apps.
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In conclusion, the positive outlook for AppLovin Corporation and the growing potential in the AI sector make it an intriguing investment opportunity. Investors should consider the company’s strong position in the mobile gaming ad tech space and its potential for continued growth in the coming years.
