Evercore ISI reiterated its Outperform rating and $750 price target on AppLovin Corp (NASDAQ: APP), citing strong fundamentals despite recent share price weakness.
The firm said the stock’s recent negative momentum appears disconnected from underlying business performance and feedback from industry checks. AppLovin is currently trading at approximately 14.6x estimated 2027 EV/EBITDA, near levels seen following prior short reports, which Evercore views as an attractive entry point ahead of first-quarter earnings and a potential e-commerce general availability catalyst.
Feedback from gaming advertisers exiting the first quarter was described as highly constructive, with expectations for continued gains in advertising wallet share. These gains are being driven by product launches in late 2024 and strategic adjustments by advertisers aligning with AppLovin’s evolving platform.
Despite improved execution from competitors and ongoing strategic constraints, the majority of contacts indicated expectations that AppLovin will capture a larger share of user acquisition budgets over the next six to twelve months.
The firm also noted increased user acquisition spending by certain East Asian game developers, which has further supported growth trends.
Outside of gaming, feedback from agencies and advertisers has been more mixed, though Evercore highlighted progress in key areas such as Axon-pixeled domain growth and AI-driven creative tools. Domain counts increased 148% between late December 2025 and March 2026, with domains among the top one million rising 54%, according to BuiltWith data.
The firm also pointed to advancements in AI video creative tools, announced in March, as a potential catalyst for broader e-commerce adoption and scaling.
