BTIG Raises AppLovin Price Target to $547, Keeps Buy Rating Amid Q2 Earnings

BTIG raises price target for AppLovin (APP) from $483 to $547 and maintains a Buy rating after the company reported Q2 2025 results slightly better than expectations. The firm notes the launch and expansion of AppLovin's self-serve advertising tool, AXON Ads Manager, in the seasonally strongest quarter, as well as growth through referral programs and international expansion. AppLovin is an American technology company providing end-to-end software and AI solutions for businesses to reach, monetize, and grow their audiences.

BTIG has raised its price target for AppLovin (APP) from $483 to $547 and maintains a Buy rating following the company's Q2 2025 earnings report. The firm highlighted the launch and expansion of AppLovin's self-serve advertising tool, AXON Ads Manager, in the seasonally strongest quarter, as well as growth through referral programs and international expansion.

AppLovin's revenue surged 77% to $1.26 billion in Q2 2025, with gross margins improving to 87.7% and operating costs reduced by 29%. The company's earnings per share (EPS) from continuing operations jumped to $2.39, and adjusted EBITDA nearly doubled to $1 billion [1]. Despite missing revenue expectations by 1.2%, AppLovin's strong financial health was reflected in its robust profit and growth metrics [2].

The company's core gaming ad business continues to drive growth, with the MAX marketplace consistently seeing double-digit growth rates. AppLovin plans to launch a self-service platform for advertisers in 2026, with the new AXON Ads Manager serving as the foundation for this platform [1].

Looking ahead, AppLovin's guidance for Q3 CY2025 is $1.33 billion at the midpoint, above analyst estimates of $1.31 billion. The company expects the referral-based launch of AXON to accelerate advertiser onboarding, particularly outside the gaming vertical [2].

References:
[1] https://www.ainvest.com/news/applovin-posts-record-revenue-q2-surges-77-1-26-billion-short-seller-claims-fail-impact-stock-2508/
[2] https://finance.yahoo.com/news/app-q2-deep-dive-platform-072127530.html