AppLovin Hits Record High After BofA Doubles Price Target: Retail Sentiment Turns Bullish

AppLovin Corp’s ($APP) stock was up 7% on Monday hitting a record high of $155.35 after Bank of America (BofA) doubled its price target to $210 from $120, while maintaining a ‘Buy’ rating. 

BofA notes that it now sees AppLovin as a ‘growth stock’ and has raised its revenue growth estimates for 2025 and 2026 by 6% and 4%, respectively, due to increased confidence in the company’s core business of mobile game ads. 

AppLovin’s AI-powered ad tech software, Axon 2.0, has started a transformation in growth and profitability which the “markets and the Street have been slow to recognize,” the brokerage said in its research note. 

Last week, Jefferies also upgraded its price target to $175 from $108 citing optimistic trends in mobile gaming in its latest survey. "Our survey suggests that APP should be able to sustain 20-30% Software Platform revenue growth for at least the next two years," said the research note.

Retail sentiment on Stocktwits has skyrocketed into the ‘extremely bullish’ (88/100) territory from ‘bearish’ a day ago. Chatter around AppLovin’s stock has also spiked into the ‘extremely high’ zone.

AppLovin has enjoyed an exceptional year, with its stock surging nearly 300% in 2024 and consistently exceeding analyst expectations for the past four quarters. The company’s third-quarter earnings are due on Nov. 6. 

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