Jefferies Says AppLovin (APP) Stock Could Double From Here

TLDR

• AppLovin (APP) stock jumped 7% Monday after Jefferies defended the 39% year-to-date decline as “a great buying opportunity”
• Jefferies maintained Buy rating with $860 price target, expecting over 50% revenue growth by fiscal year 2026
• Stock currently trades at $406.70, down 40% year-to-date as investors worry about AI threats to the business model
• Analyst James Heaney calls concerns about CloudX, Meta Audience Network, and Google Genie “overblown risks”
• Jefferies expects AppLovin to deliver a revenue beat in Q4 earnings, scheduled for February 11th

AppLovin (APP) stock climbed 7% Monday after Jefferies analyst James Heaney stepped in to defend the battered shares. The stock closed Friday at $406.70, down 40% year-to-date.

AppLovin Corporation, APP

Heaney kept his Buy rating and $860 price target intact. He called the stock’s steep decline “a great buying opportunity” for investors willing to look past near-term concerns.

The mobile technology company has faced investor skepticism about AI’s potential impact on its advertising platform. Fears centered on new tools from CloudX, Meta Audience Network, and Google Genie.

Heaney dismissed these worries as “overblown risks.” He argued they’ve created a pricing dislocation that doesn’t reflect AppLovin’s actual business strength.

Valuation Looks Attractive

At current levels, AppLovin trades at 15 times Jefferies’ fiscal year 2027 EBITDA estimates. That multiple looks cheap for a company Heaney expects to grow revenue by over 50% through fiscal year 2026.

The analyst’s confidence stems from recent survey work and expert checks. Both AppLovin’s core gaming business and its expanding e-commerce division showed positive trends in the research.

Jefferies expects AppLovin to beat revenue forecasts when it reports fourth-quarter results on February 11th. The firm’s surveys “continued to be positive” across both major business segments.

Wall Street Remains Bullish

Other analysts have also backed AppLovin recently despite the stock’s tumble. Needham upgraded shares to Buy with a $700 target, citing strength in e-commerce revenue growth for 2026.

Piper Sandler maintained its Overweight rating and $800 price target. The firm pointed to consistent year-over-year growth in AppLovin’s sellers.json total supply.

Evercore ISI initiated coverage with an Outperform rating and $835 target. The firm called AppLovin’s ad tech platform dominant in mobile gaming.

Benchmark kept its Buy rating with a $775 price target. The firm downplayed concerns about AI-driven game creation tools affecting AppLovin’s business.

The analyst consensus strongly favors buying AppLovin stock at current levels, with a rating of 1.57. InvestingPro data shows the stock’s RSI indicates oversold territory.

AppLovin’s year-to-date decline of 39.64% has created what multiple analysts view as an entry point. The company provides marketing software and tools that help mobile app developers acquire users and monetize their apps.

Investors will get clarity on the business when AppLovin reports earnings in two days. The February 11th report will test whether Jefferies’ optimism about a revenue beat proves accurate.