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Home.forex news reportMorgan Stanley Lifts AppLovin Corporation (APP) Target on AI-Led Growth Thesis

Morgan Stanley Lifts AppLovin Corporation (APP) Target on AI-Led Growth Thesis

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AppLovin Corporation (NASDAQ:APP) is among the stocks with the best earnings growth for the next 5 years. On January 13, Morgan Stanley lifted the price target on AppLovin Corporation (NASDAQ:APP) to $800 from $750 and maintained an ‘Overweight’ rating on the stock, according to TheFly. This suggests a potential upside of nearly 31%.

According to the firm, 2026 will be “thematically similar” to 2025 in the internet sector as the market is expected to reward companies with significantly positive ROIC from GenAI or GPU-enabled technologies. Meanwhile, subsectors exposed to disruption uncertainty, including ridesharing from autonomous vehicles (AV) and e-commerce, travel, and smaller, less proven ad platforms, will likely trade at lower multiple bands, the analyst states in a note on the North America Internet group.

Oppenheimer Names AppLovin (APP) a Top Pick, Sees More Upside Ahead
Oppenheimer Names AppLovin (APP) a Top Pick, Sees More Upside Ahead

A day later, Robert Coolbrith from Evercore ISI started coverage on AppLovin Corporation (NASDAQ:APP) with an ‘Outperform’ rating and a price target of $835. The analyst calls the company’s ad tech platform for mobile gaming “dominant,” anticipating spending in mobile gaming and e-commerce ads to maintain 30%-plus revenue and EBITDA compound annual growth rates from 2025 to 2028.

AppLovin Corporation (NASDAQ:APP) is a California-based company building a software-based platform for advertisers to improve the marketing of their content. Founded in 2011, the company operates through two segments: Advertising and Apps.

While we acknowledge the potential of APP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.



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