We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AppLovin Surges on Strong Q3 Results, Upbeat Guidance: ETFs in Focus
Read MoreHide Full Article
AppLovin (APP - Free Report) shares surged 28% on Thursday (at the time of writing) after the mobile app marketing company delivered better-than-expected third-quarter results and issued an upbeat fourth-quarter outlook. Strong guidance eased concerns about its growth trajectory, prompting Wall Street analysts to raise their price targets.
The company reported third-quarter revenue of $2.18 billion, beating the Bloomberg consensus estimate of $2.07 billion. Earnings came in at $4.30 per share, ahead of analysts' expectations of $4.04, as mentioned on Yahoo Finance.
AppLovin also provided a stronger-than-expected forecast for the fourth quarter. It expects revenue between $2.37 billion and $2.40 billion, comfortably above the analyst consensus of $2.25 billion.
Analysts Raise AppLovin Price Targets
The strong results prompted analysts to turn more positive on AppLovin's near-term prospects.
BTIG raised its price target to $450 from $396 while maintaining a Buy rating, suggesting roughly 35% upside from current levels. Needham also reiterated its Buy rating and maintained a $475 price target, implying approximately 43% upside, as quoted on Yahoo Finance.
According to short-term forecasts from 30 analysts, AppLovin had an average price target of $461.70, with estimates ranging from $325 to $710. This represents a potential upside of 69.9% from its closing price of $271.75, recorded on Nov. 4, 2026.
The positive analyst response suggests that AppLovin's latest results have helped ease some concerns about its growth outlook. However, the stock's sharp rebound comes after a difficult year for investors. The fund is down 43.7% so far this year despite Thursday’s gains.
AppLovin Stock Remains Under Pressure This Year
The stock's earlier weakness reflected concerns about its valuation, growth sustainability and business outlook.
For now, the key question is whether AppLovin can sustain this growth momentum and translate its strong operating performance into a more durable stock-price recovery. The company’s forward price/earnings ratio is in line with the industry average. However, the company’s price/sales ratio of 11.95X is higher than the industry average of 1.83X.
Broker Rating
AppLovin currently has an average brokerage recommendation (ABR) of 1.52 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 31 brokerage firms. The current ABR compares to an ABR of 1.52 a month ago based on 31 recommendations.
Of the 31 recommendations deriving the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70.97% and 6.45% of all recommendations. A month ago, Strong Buy made up 70.97%, while Buy represented 6.45%.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that are heavy on AppLovin. The basket minimizes the company-specific concentration risks. APP-Heavy ETFs include the likes of Trenchless Fund ETF (RVER - Free Report) , State Street Communication Services Select Sector SPDR ETF (XLC - Free Report) and Amplify Video Game Leaders ETF (GAMR - Free Report) . These ETFs invest about 4% to 5% of their weights in App stocks.
View the Zacks #1 Rank List
Image: Bigstock
AppLovin Surges on Strong Q3 Results, Upbeat Guidance: ETFs in Focus
AppLovin (APP - Free Report) shares surged 28% on Thursday (at the time of writing) after the mobile app marketing company delivered better-than-expected third-quarter results and issued an upbeat fourth-quarter outlook. Strong guidance eased concerns about its growth trajectory, prompting Wall Street analysts to raise their price targets.
The company reported third-quarter revenue of $2.18 billion, beating the Bloomberg consensus estimate of $2.07 billion. Earnings came in at $4.30 per share, ahead of analysts' expectations of $4.04, as mentioned on Yahoo Finance.
AppLovin also provided a stronger-than-expected forecast for the fourth quarter. It expects revenue between $2.37 billion and $2.40 billion, comfortably above the analyst consensus of $2.25 billion.
Analysts Raise AppLovin Price Targets
The strong results prompted analysts to turn more positive on AppLovin's near-term prospects.
BTIG raised its price target to $450 from $396 while maintaining a Buy rating, suggesting roughly 35% upside from current levels. Needham also reiterated its Buy rating and maintained a $475 price target, implying approximately 43% upside, as quoted on Yahoo Finance.
According to short-term forecasts from 30 analysts, AppLovin had an average price target of $461.70, with estimates ranging from $325 to $710. This represents a potential upside of 69.9% from its closing price of $271.75, recorded on Nov. 4, 2026.
The positive analyst response suggests that AppLovin's latest results have helped ease some concerns about its growth outlook. However, the stock's sharp rebound comes after a difficult year for investors. The fund is down 43.7% so far this year despite Thursday’s gains.
AppLovin Stock Remains Under Pressure This Year
The stock's earlier weakness reflected concerns about its valuation, growth sustainability and business outlook.
For now, the key question is whether AppLovin can sustain this growth momentum and translate its strong operating performance into a more durable stock-price recovery. The company’s forward price/earnings ratio is in line with the industry average. However, the company’s price/sales ratio of 11.95X is higher than the industry average of 1.83X.
Broker Rating
AppLovin currently has an average brokerage recommendation (ABR) of 1.52 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 31 brokerage firms. The current ABR compares to an ABR of 1.52 a month ago based on 31 recommendations.
Of the 31 recommendations deriving the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 70.97% and 6.45% of all recommendations. A month ago, Strong Buy made up 70.97%, while Buy represented 6.45%.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that are heavy on AppLovin. The basket minimizes the company-specific concentration risks. APP-Heavy ETFs include the likes of Trenchless Fund ETF (RVER - Free Report) , State Street Communication Services Select Sector SPDR ETF (XLC - Free Report) and Amplify Video Game Leaders ETF (GAMR - Free Report) . These ETFs invest about 4% to 5% of their weights in App stocks.