Target price raised to $491! Wells Fargo & Company: AppLovin (APP.US) occupies a key position in mobile advertising strategy, and the growth story is far from over.

Wells Fargo & Company released a research report, giving an "add" rating to the AI marketing advertising application company AppLovin (APP.US), raising the target price from $480 to $491 while also raising profit expectations. Analysts led by Alec Brondolo stated that their in-depth research on the online advertising business has revealed several bright spots, leading to a 6% increase in revenue expectations for 2026 and a 3% increase for 2027. The analysts also pointed out that the website traffic accessing AppLovin's web advertisements is accelerating. By identifying around 2700 domain names with AppLovin pixels and combining Similarweb data, they found that traffic on these types of websites grew by 40% year-on-year in July this year, compared to a 20% increase in January. Brondolo and his team mentioned that smaller private multi-channel attribution platforms have become important distribution channels and brand promoters for AppLovin's web advertisements. They believe that the company still has room to increase customer penetration in this channel. The analysts added that although the growth in web advertising customers has slowed down in recent months, the scale of newly acquired customers has significantly expanded. The Brondolo team emphasized: "We believe that AppLovin has a strong strategic position in the mobile gaming advertising market and has leading products in user acquisition and advertising monetization. Therefore, we expect the company to continue expanding its market share in the $340 billion market, leading to significantly higher revenue expectations for 2025 and 2026 than market consensus. Based on this, we give AppLovin a 'add' rating."