Why Benchmark Says Google's AI Won't Derail AppLovin (APP)

AppLovin Corporation (NASDAQ:APP) is one of the 10 AI Stocks Analysts Are Watching. On February 2, Benchmark analyst Mike Hickey reiterated a Buy rating on the stock with a $775.00 price target. The firm sees AI-native game creation risks as overstated, seeing no direct impairment to the company’s long-term positioning.

Benchmark noted how a new artificial-intelligence project at Google could disrupt how videogames are made, but that AppLovin’s role in the mobile ecosystem remains intact.

“While AI-native world models represent a credible long-term challenge to incumbent game engines and traditional development workflows, we believe the implications for AppLovin are materially different and often overstated.”

Dismissing concerns that Google DeepMind’s Project Genie could threaten AppLovin, the firm noted that developers will eventually package Genie-created experiences as standalone games and distribute them through Android and iOS instead of remaining confined within Alphabet’s ecosystem.

“Under this assumption, AI-native creation changes how games are built, but not how they are discovered, acquired, or monetized.”

Advertisers wouldn’t be entirely safe from advancements in AI-driven game development. Lower development costs could mean shorter game lifecycles and faster player churn, which may reduce user-acquisition spending for individual games.

“While AI-driven creation could pressure per-title LTV in gaming over time, we believe this risk is likely offset by higher content volume, faster iteration cycles, and sustained advertiser demand across a unified auction. As a result, we see no clear mechanism by which Project Genie or similar AI-native creation tools would directly impair AppLovin’s long-term competitive position.”

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology.

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.