AppLovin Garners Bullish Analyst Sentiment Ahead of Earnings

Market analysts are expressing renewed confidence in AppLovin Corporation ahead of its upcoming financial report. This optimism is underscored by Piper Sandler reiterating a bullish "Overweight" rating and setting a price target of $800 per share, suggesting an approximate 30% upside from current levels.

The focal point for investors is the scheduled release of the company’s fourth-quarter and full-year 2025 results. AppLovin confirmed it will announce these figures on February 11, 2026, after the U.S. market closes. A subsequent webinar will be hosted by CEO Adam Foroughi and CFO Matthew Stumpf to discuss the performance.

Analysts at Piper Sandler point to robust signals from the e-commerce sector as a primary driver for their positive outlook. Encouraging data from the 2025 holiday season, particularly surrounding Black Friday and Cyber Monday, indicated strong momentum. The firm’s AI-driven advertising platform has been trialed by over 180 major brands, including industry leaders Apple and Amazon. This trend signals AppLovin’s successful diversification into capturing advertising budgets beyond its core gaming vertical.

Should investors sell immediately? Or is it worth buying Applovin?

A Transformative Year and Soaring Profitability

The upcoming report concludes a pivotal year for the company, marked by a significant strategic shift. In June 2025, AppLovin divested its mobile gaming division—encompassing Lion Studios and Machine Zone—to Tripledot Studios in a deal valued at roughly $800 million. The transaction included $400 million in cash and a 20% equity stake in Tripledot.

The financial impact of this move has been substantial. For the third quarter of 2025, revenue surged 68% year-over-year to $1.41 billion. More strikingly, adjusted EBITDA skyrocketed 79% to $1.16 billion, representing a remarkable margin of 82%. This marks a dramatic increase from the 60% margin reported at the end of 2024. Furthermore, the company’s free cash flow exceeded $1 billion for the first time.

Investor Focus for the February Announcement

When AppLovin presents its results, market participants will be scrutinizing three critical areas. First, the degree to which the noted e-commerce strength translated into actual revenue during the crucial Christmas quarter. Second, management’s growth forecast for its AXON platform, especially regarding its expansion into e-commerce and connected TV advertising. Finally, the company’s capital allocation strategy will be in focus, particularly any plans for its significant cash reserves. This follows the authorization of an additional $3.2 billion for share repurchases at the end of 2025.