New York, Jan 27, 2026, 18:39 EST — After-hours
AppLovin Corp (APP.O) shares ended Tuesday 1.5% higher at $543.56, marking a second straight day of gains for the ad-tech firm. (Yahoo Finance)
Needham & Company bumped AppLovin up to “buy” from “hold” on Monday, tagging a $700 price target. The firm pointed to stronger-than-expected e-commerce ad growth in 2026, noting the stock remains well off last month’s highs. Analyst Bernie McTernan raised his 2026 e-commerce revenue forecast to $1.45 billion from $1.05 billion, writing, “We upgrade APP to Buy… following additional work on ecommerce giving us more confidence in the trajectory of ecommerce revenue growth in ’26E.” Needham also outlined a bull scenario where AppLovin’s ramp mirrors TikTok’s rise and highlighted broader tailwinds like richer ad formats and increased mobile spending. (Investing)
The upgrade comes as AppLovin pushes to prove its Axon tools can expand beyond mobile gaming into web shopping ads, following a strong rally last year and a sluggish start to 2026. Needham’s survey of over 2,200 websites found 435 using AppLovin as of Jan. 21, highlighting new clients like Kalshi and Etsy. The Axon Pixel plug-in integrates via Shopify or Google’s campaign set-up tools. However, neither Etsy nor Kalshi confirmed the partnerships, and McTernan warned it’s “still early days” for the self-service push launched late last year. (Barron’s)
AppLovin’s pitch is simple: it’s expanding from app-install ads into web commerce. That move promises bigger figures but also invites closer scrutiny.
Traders are now weighing if this broker upgrade signals a broader trend or just a brief rebound in a stock that’s been volatile with every new data point linked to its web advertising efforts.
Optimism in the latest notes hinges on execution: securing more advertisers, boosting their spend, and delivering consistent results so brands won’t see the platform as just a quick trial.
Talk of a TikTok-style surge raises expectations. Investors want clear proof the funnel is widening, not merely a few clients shifting their spend.
Still, plenty can derail the story. If initial brand tests flop or spending growth turns uneven, the forecast-driven thesis could unravel fast — particularly after a sharp rally that’s already tested investors’ tolerance for disappointment.
The company’s own update is the next major milestone.
AppLovin will release its fourth-quarter and full-year 2025 earnings on Feb. 11 after the U.S. market closes. The results will be accompanied by a webcast featuring CEO Adam Foroughi and CFO Matthew Stumpf. (Applovin)
