AppLovin Stock Gets A Needham Upgrade – Why Does The Firm See A 33% Upside Potential For The Stock?

• Needham raised its 2026 e-commerce revenue forecast from $1.05 billion to $1.45 billion.
• The firm noted that AppLovin’s share price has recently retreated from its peak a month ago, presenting a potential buying opportunity for investors.
• Needham also highlighted the potential for upside beyond current projections, suggesting that AppLovin could follow a growth trajectory similar to TikTok's.

AppLovin (APP) has received a bullish upgrade from Needham, which raised its rating to ‘Buy’ from ‘Hold’ and set a $700 price target, reflecting renewed confidence in the company’s e-commerce growth potential for 2026. 

The price target implies a potential 33% upside from the company’s Friday closing price. 

Revenue Growth Outlook

The move comes after Needham observed strong performance in AppLovin’s e-commerce segment, particularly driven by its self-service advertising platform. The firm raised its 2026 e-commerce revenue forecast from $1.05 billion to $1.45 billion, citing increased advertiser adoption and higher spending that could offset the usual seasonal dip in the first quarter. 

AppLovin stock traded over 5% higher on Monday morning. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory while message volume changed to ‘high’ from ‘extremely high’ levels in 24 hours. 

The firm noted that AppLovin’s share price has recently retreated from its peak a month ago, presenting a potential buying opportunity for investors. Needham also highlighted the potential for upside beyond current projections, suggesting that AppLovin could follow a growth trajectory similar to TikTok in the e-commerce and digital advertising spaces.

Fourth-Quarter Earnings 

The company is scheduled to report its fourth-quarter earnings on February 11 and expects revenue in the range of $1.57 billion and $1.6 billion. Analysts see a revenue of $1.61 billion and earnings per share of $2.95. 

Founded in 2012, AppLovin specializes in mobile advertising technology and software solutions for app developers. Its platform connects advertisers with consumers through programmatic campaigns while enabling app publishers to monetize effectively. 

However, last week, Capitalwatch released a report accusing AppLovin’s main shareholders, Hao Tang and Ling Tang, of using the company to move large amounts of illegal money. The report claimed that criminal groups paid AppLovin huge advertising fees through its AXON and Array systems to launder illicit funds. 

APP stock has gained over 58% in the last 12 months. 

Also See: INMD Stock Jumped Nearly 13% Today – What’s Powering The Rally?

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