APP surges 50% in 3 months as Axon 2 boosts ad performance and financials amid rising demand in mobile advertising.

AppLovin NASDAQ: APP was one of two much-loved stocks over the recent past that markets dumped on June 9. This was in reaction to news coming from S&P Global NYSE: SPGI.

NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether the leadership of AppLovin Corporation (“AppLovin”) (NASDAQ: APP) breached their fiduciary duties to AppLovin and its shareholders. CLICK HERE TO LEARN MORE Scott+Scott is investigating whether members of AppLovin's board of directors (the “Board”) made, or caused AppLovin to make, false and/or misleading statements, as well as fa.

AppLovin's S&P 500 snub is temporary; fundamentals remain strong with robust profitability and rapid revenue growth, especially in AI-driven advertising. The company fits all the criteria for an S&P 500 entry, with a market cap 6x the $20.5 billion requirement. Q2 headline numbers may look weak due to the Apps business sale, risking short-term volatility even as the core ad business grows strongly.

Applovin (APP) got some analyst love this morning after Morgan Stanley bumped up its price target on the stock. However, as Diane King Hall explains, the company still traded lower at the open when it was left out of joining the SPX.

AppLovin remains a top S&P 500 inclusion candidate despite Friday's snub; the imminent pullback next week is a buying opportunity. The company's adtech business and AppDiscovery tool are driving robust revenue and earnings growth, with CY25 EBITDA estimate up to $4.2B (+80%). Massive $1B share buyback and accelerating free cash flow per share further enhance the stock's attractiveness and value.

The online trading platform and advertising technology company were seen as contenders to join the index.

S&P Dow Jones Indices made no changes to the S&P 500 index late Friday, snubbing Robinhood Markets and AppLovin.

After hitting an all-time high of $525.15 in February, AppLovin Corp.’s (NASDAQ: APP) share price tumbled more than 35%, due to a pending class action lawsuit and to short seller reports. However, the software company’s better-than-expected first-quarter report gave the stock a boost last month. The share price is now 27.9% higher than at the beginning of the year. Compared to a year ago, the stock is 395.0% higher, far outperforming the S&P 500 and the Nasdaq in that time. Since the company went public in 2021, its stock price is up 613.9%. So, this has clearly been a top growth stock that investors have done well owning in recent years. AppLovin has been among the top tech stocks seeing a lot of love from the market, but is that still true with the recent overhang? 24/7 Wall St. Key Points: AppLovin Corp. (NASDAQ: APP) has seen incredibly strong growth, driven by its core business model that helps online advertisers boost monetization and marketing efforts for their solutions. Key drivers propelling AppLovin going forward include its enhancements in AI-powered advertising and its expansion into e-commerce advertising. Here’s where this stock has come since its inception, and where AppLovin could be headed over the next few years. If you’re looking for some stocks with huge potential, make sure to grab a free copy of our “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential. These days, the company focuses on providing software solutions that enhance the marketing and monetization of online advertisers. With AppLovin, there are certainly catalysts worth considering, and we’ll get to those shortly. It continues to benefit from the strong secular growth trends investors are seeking increased exposure to. As investors continue to pile into such stocks, retail investors appear eager to gain outsized exposure ahead of a continued boom. It is worth remembering that AppLovin did experience a drawdown of more than 90% from its post-pandemic highs in 2021. So, is this stock headed for a further beatdown, or is its momentum real? Let’s dive into some catalysts and price predictions around where this stock could go for the rest of 2025 through to the end of this decade. Three Key Drivers for AppLovin As mentioned, AppLovin investors have to contend with plenty of news. For instance, the analysts covering AppLovin have not been as bullish on this company as many may think, having issued warnings on the stock in the past year or so due to concerns around the company’s fundamentals. Nonetheless, we see these key drivers propelling AppLovin going forward. 1. AI-Powered Advertising Enhancements AppLovin’s Axon AI engine has been a game-changer, optimizing ad targeting and expanding beyond gaming into new categories like e-commerce, fintech, and automotive advertising. During the Q4 2024 earnings call, CEO Adam Foroughi highlighted that for the first time, AppLovin captured a significant share of holiday shopping ad spend—validating that its AI models are effective outside gaming. Scaling AI Beyond Gaming: The company initially focused on direct-to-consumer (DTC) brands, but early pilots have shown AI-driven success across multiple verticals. This means any business in any industry could potentially tap into AppLovin’s advertising platform. Personalized Advertising With Generative AI: The company is developing automated tools and AI-generated ad creatives to improve engagement. AppLovin’s self-service platform (currently in development) will eventually allow businesses to run ads autonomously with AI-optimized targeting—a major step toward scaling its reach. AppLovin’s AI capabilities are proving to be industry-agnostic, opening the door for millions of global advertisers. 2. Expansion Into E-Commerce Advertising Foroughi described fourth-quarter 2024 as a major milestone, marking AppLovin’s first real penetration into e-commerce advertising. Historically, the company primarily monetized mobile gaming ads, but now retail and consumer brands are joining the platform in large numbers. Surging Demand From E-Commerce Brands: Advertisers saw strong return on investment during the holiday season, prompting continued demand for the platform in 2025. Pilot Program Scaling Up: While AppLovin hasn’t disclosed the number of e-commerce advertisers, industry checks suggest a significant influx of brands wanting access. Self-Service Expansion Is the Next Big Growth Driver: Currently, the company manually onboards advertisers, but in 2025, the launch of automated tools and a self-serve platform will allow thousands of new businesses to join. E-commerce advertising is set to be a major revenue contributor. Once self-serve tools become operational, adoption could scale exponentially. 3. Strategic Divestment of Mobile Gaming Unit AppLovin is officially exiting game development—a move that frees up resources to focus entirely on advertising technology. $900 Million Sale of Apps Business: AppLovin announced that it has signed an exclusive term sheet to sell its mobile gaming division, with $500 million in cash and $400 million in equity in a private company. Why This Matters: The company originally acquired gaming studios to train its AI models, but it was never meant to be a core business. Now that AI is self-sufficient, AppLovin no longer needs to develop its own games. Shifting to a Pure Ad-Tech Model: With gaming divested, the company can fully concentrate on expanding its advertising ecosystem—positioning itself as a direct competitor to Google and Meta in the ad tech space. Divesting from mobile games is a giant pivot for the stock, as it paves the way as a pure advertising technology company. Stock Price Prediction for 2025 There are clearly strong reasons why AppLovin was up as much as it is this year. Simply put, investors have been banking on AppLovin as a potential AI beneficiary, as several AI advancements have fueled customer success and accelerated the company’s adoption and growth rates across the board. If the company can continue to prioritize generating outsized free cash flow and return capital to shareholders to a greater degree, I certainly think this multiple could be warranted. Here’s where the stock could be headed, assuming the company’s multiple stays the same and earnings grow according to analyst estimates. Wall Street’s consensus one-year price target for AppLovin has risen to $457.67, which would be a 10.5% gain from the current price. On average, 27 analysts covering AppLovin recommend buying shares, four of them with a Strong Buy rating. 24/7 Wall St.’s forecast projects AppLovin’s stock price to be just $377.10 by year’s end, or about 9% lower than today’s price. Yet, we see the stock continuing its strong growth rate and outperforming analysts’ expectations going forward. AppLovin Price Target for 2030 By the end of the decade, we estimate AppLovin’s stock price to be $662.40 per share with less than 10% year-over-year revenue growth. Our estimated stock price will be nearly 60% higher than the current stock price. Year Price Target Upside Potential 2025 $377.10 −8.9% 2026 $445.78 7.6% 2027 $500.47 20.8% 2028 $572.02 38.1% 2029 $609.44 47.2% 2030 $662.40 59.9% Palantir Stock Price Prediction and Forecast 2025-2030 The post AppLovin (NASDAQ: APP) Stock Price Prediction and Forecast 2025-2030 (May 30) appeared first on 24/7 Wall St..

I reiterate my 'Buy' rating on AppLovin, expecting S&P 500 inclusion to be a game-changing catalyst for the stock. Even without S&P inclusion, APP boasts phenomenal growth, strong Q1 FY2025 results (ads +81% YoY), and a smart divestiture of its Apps business to focus on high-margin ads. The company sees limited impact from potential tariffs and views lower app store fees as a tailwind, enabling customers to increase ad spend on its platform.