Goldman Sachs Raises PT on AppLovin (APP) Stock

AppLovin Corporation (NASDAQ:APP) is one of the Most Promising AI Stocks to Buy Right Now. On October 14, Goldman Sachs analyst Eric Sheridan lifted the price target on the company’s stock to $630 from $445, while maintaining a “Neutral” rating as part of a broader research note previewing Q3 results for the Digital Advertising names.

The analyst added that AppLovin Corporation (NASDAQ:APP) can drive sustained ad revenue growth from its core mobile gaming segment over the upcoming 3 years. This is expected to be driven by a combination of steady industry growth, favourable secular tailwinds, and modest market share gains.

For Q3 2025, AppLovin Corporation (NASDAQ:APP) expects to deliver revenue between $1.320 billion – $1.340 billion, with adjusted EBITDA in the range of $1.070 billion – $1.090 billion. The company expects an adjusted EBITDA margin of 81%. Elsewhere, S&P Global Ratings has a more favorable view of AppLovin Corporation (NASDAQ:APP)’s business prospects and expects S&P Global Ratings-adjusted net leverage to remain under 1x over the upcoming 24 months.

ClearBridge Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

We did see good results from AI-ecosystem holdings in IT and industrials. AppLovin Corporation (NASDAQ:APP) delivered exceptional first-quarter results, highlighted by outsize product-led share gains with ad revenue growing 71% year over year driven by the AI-driven advertising algorithm provider’s continued strength in gaming and rising traction in e-commerce.

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.

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Disclosure: None. This article is originally published at Insider Monkey.