AppLovin (APP) stock has rallied by more than 82% year-to-date, despite the recent pullback sparked by a Bloomberg report revealing that the U.S. Securities and Exchange Commission (SEC) is investigating the mobile ad-tech platform’s data collection practices. Nonetheless, Wall Street remains bullish on the stock. In fact, on Monday, APP stock won another bull, with RBC Capital analyst Matthew Swanson initiating coverage of AppLovin with a Buy rating and a price target of $700.
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RBC Capital Is Bullish on AppLovin’s Growth Potential
Swanson noted that advertising and marketing technology are now “increasingly intertwined,” with return on advertising spend (ROAS) and attribution becoming more vital than formats and publishers. The analyst believes that AppLovin is well-positioned to benefit from the growing push toward personalized marketing and greater emphasis on attribution.
Additionally, Swanson noted the expanded reach of AppLovin’s platform, which is diversifying the company’s demand resources and unlocking secular growth around personalized marketing and retail media trends within e-commerce. He expects the company’s fixed cost model to continue to deliver outsized growth throughout 2026. The analyst emphasized that the company’s “best in class” margins justify his bullish stance.
Last week, a top Bank of America analyst reiterated a Buy rating on APP stock, saying that the selloff following the SEC probe news presents a buying opportunity. Bank of America believes that AppLovin is reshaping the mobile gaming space into an effective e-commerce channel for merchants.
Is APP a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on AppLovin stock based on 17 Buys and three Hold recommendations. The average APP stock price target of $647.06 indicates about 10% upside potential.
