Wedbush Lowers AppLovin (APP) PT to $465, Cites Valuation Reset, Industry Headwinds

• StockStory Top Pick APP +13.19%

AppLovin Corporation (NASDAQ:APP) is one of the most profitable new stocks to buy right now. On February 5, Wedbush analyst Michael Pachter lowered the firm’s price target on AppLovin from $800 to $465, while keeping an Outperform rating. This valuation reset accounts for softer industry sentiment, regulatory headwinds, and recent competitor data in the e-commerce sector.

Despite these near-term pressures, Wedbush remains confident in AppLovin’s dominant position in mobile gaming advertising and believes its strategic expansion into e-commerce and Connected TV will provide long-term protection against competitive threats.

On January 26, Needham upgraded AppLovin to Buy from Hold with a $700 price target, citing increased confidence in the company’s 2026 e-commerce revenue trajectory. The firm raised its 2026 e-commerce sales estimates to $1.45 billion from $1.05 billion, projecting that growth from the self-service platform launch and increased advertiser spending will more than offset typical first-quarter seasonality. This upgrade also capitalizes on a recent stock pullback from its monthly highs, with Needham noting a bullish case where AppLovin’s revenue could follow a growth path similar to TikTok.

AppLovin Corporation (NASDAQ:APP) builds a software-based platform for advertisers to enhance the marketing and monetization of their content in the US and internationally. It operates through two segments: Advertising and Apps

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Disclosure: None. This article is originally published at Insider Monkey.