New York, January 27, 2026, 11:15 EST — Regular session
- AppLovin shares climbed roughly 2.3% in early trading, following the general uptick in U.S. equities
- On Monday, Needham raised its rating on the ad-tech firm to “buy,” setting a $700 price target.
- Traders are eyeing whether AppLovin’s e-commerce ad drive will sustain momentum into the next earnings report
AppLovin shares jumped roughly 2.3% to $548 Tuesday morning, building on the rally sparked by Needham’s upgrade the previous day.
Based in Palo Alto, California, the company has seen a rollercoaster ride this month. The key question now: can AppLovin extend ad spending beyond mobile gaming and into e-commerce?
Needham lifted its rating on AppLovin to “buy” from “hold” Monday, setting a $700 price target. The firm highlighted strong momentum in the Axon 2 ad optimizer, Benzinga reported. 1
“We see potential upside beyond our estimates in the bull case, which assumes APP revenue could follow a TikTok-like growth path,” Needham analyst Bernie McTernan said, according to the report. 1
The note pointed to a rise in “pixel adds”—those tracking tags advertisers embed on sites—and stronger engagement from brands like Kalshi and Etsy as signs AppLovin’s e-commerce efforts are picking up steam. 1
Despite Tuesday’s uptick, the stock remains about 18% lower year-to-date, according to Schaeffer’s Research in a market note featured on Finviz. 2
The broader market showed strength: the Invesco QQQ Trust climbed roughly 0.9%, and the SPDR S&P 500 ETF gained about 0.5%.
Positioning reveals clear tension. Short interest has climbed to roughly 6.3% of the float, equating to nearly four days of demand at average volume, according to Schaeffer’s note — essentially a wager on the stock slipping. 2
The upgrade trade can unravel quickly. Should the e-commerce boost be limited or advertisers pull back, a premium multiple offers slim margin for error. Digital ad competition remains fierce.
AppLovin will report its fourth-quarter and full-year 2025 earnings on Feb. 11, after the U.S. market closes. The company also announced a webcast featuring CEO Adam Foroughi and CFO Matthew Stumpf to discuss the results. 3
