Scotiabank has increased its 12-month price target for AppLovin Corp (NASDAQ:APP) to $775.00 from $750.00 while keeping a Sector Outperform rating, placing the new target below the analyst high of $860 but well above the stock's most recent trading level of $456.81, per InvestingPro data.
The bank's revision follows AppLovin's fourth-quarter results, which outperformed forecasts across revenue, EBITDA and earnings per share. Scotiabank highlighted that the company's first-quarter guidance implies roughly 51% revenue growth at the midpoint after excluding business operations divested during the first quarter of 2025. That guidance builds on an already strong growth trajectory, with AppLovin posting 98.48% revenue growth over the past twelve months and maintaining a 79.69% gross profit margin.
Despite the upbeat underlying metrics, AppLovin shares dropped by about 6% in after-hours trading on the earnings release. Scotiabank described that market reaction as disconnected from the company's fundamental performance. The firm noted the stock's elevated volatility, citing a high beta of 2.49. InvestingPro rates AppLovin's overall financial health as "GREAT," assigning a score of 3.39.
Scotiabank also emphasized expanding EBITDA margins at AppLovin and confirmed that the company's e-commerce self-service platform remains on track for general availability in the first half of 2026. The bank suggested that current trading levels could present an entry opportunity for investors ahead of what it projects will be a strong 2026 for the business, even while acknowledging that the stock has declined roughly 40% from its December 2025 highs.
Other analysts have likewise reacted to AppLovin's fourth-quarter performance with a mix of target adjustments and ratings that still skew favorable. Evercore ISI reported that AppLovin beat revenue estimates by 3% and EBITDA estimates by 5%, and the firm maintained an Outperform rating while lowering its price target to $750. Piper Sandler described the quarter as impressive, trimmed its price target to $650 and kept an Overweight rating. Needham reiterated a Buy rating with a $700 price target, pointing to robust results and possible upside from e-commerce revenue growth.
Even with positive quarterly outcomes, some investors were disappointed by AppLovin's first-quarter guidance, which contributed to a stock decline in excess of 5%. The guidance nonetheless signaled continued strong demand for the company's advertising services, while also noting the competitive backdrop posed by Big Tech and emerging platforms. BTIG retained a Buy rating but lowered its price target to $640, citing the better-than-expected guidance for the first quarter while acknowledging the mixed market response.
Taken together, the shifts in price targets and the persistence of Buy/Outperform-oriented ratings reflect differing views among sell-side firms about the timing and magnitude of AppLovin's future upside. Scotiabank's higher $775 target and emphasis on margin expansion and product roadmap milestones sit alongside more conservative target cuts from other houses, producing a layered analyst landscape around the company.
Investors and market participants will be monitoring early-2026 execution on AppLovin's e-commerce product and the company's ability to sustain revenue growth and margin expansion amid competitive pressures. Near-term sentiment appears mixed even as several analysts continue to express conviction in the company's longer-term opportunity.