Ecommerce to Drive AppLovin Corporation's (APP) 2026 Growth Story

AppLovin Corporation (NASDAQ:APP) is one of the 10 best NASDAQ growth stocks to buy for the next 10 years. On January 30, Evercore ISI analyst Robert Coolbrith reaffirmed a Buy rating and a $835 price target on AppLovin Corporation (NASDAQ:APP). The firm’s price target suggests a further 53.96% upside from here, consistent with the median Wall Street analyst estimate of 63.6%, based on 32 analysts covering the stock.

Additionally, investment firm Needham upgraded AppLovin Corporation (NASDAQ:APP) from Hold to Buy on January 26. Bernie McTernan of Needham set the price target of $700 for the shares, offering a further 29% upside from current levels. The upgrade was based on the analyst’s latest analysis showing stronger-than-expected growth in the company’s e-commerce revenue.

In a research note to investors, Bernie McTernan explained that they upgraded the stock after further analysis of the e-commerce segment, which has increased their confidence in the anticipated growth of e-commerce revenue in 2026. It reflects the firm’s growing optimism about the company’s short-term revenue potential. The firm now projects e-commerce revenue of $1.45 billion for 2026, up significantly from its previous forecast of $1.05 billion.

Analyst Bernie McTernan stated:

We are increasing our e-commerce estimates for ’26E to $1.45B vs. $1.05B prior, which includes sequential growth in 1Q as we now assume the growth in advertisers from the self-service launch and ramp up in spend more than offsets typical 1Q seasonality. Despite the increase to our e-commerce estimates, we think there is potential upside to our estimates in our bull case, which assumes APP revenue can experience a similar trajectory as TikTok.

AppLovin Corporation (NASDAQ: APP) develops a software-based platform for advertisers. Its platform improves monetization and marketing of the content. The company operates in the Apps and Advertising segments. It offers AppDiscovery, MAX, Adjust, and Wurl. AppLovin Corporation was founded in 2011 and is based in Palo Alto, California.

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