Oppenheimer is optimistic about AppLovin's non-gaming advertising and raises the target price to $240 in one go.

Oppenheimer has released a research report, significantly raising the target price of AppLovin (APP.US) to $740, up by $240, while reiterating its "outperform" rating. This substantial increase in the target price highlights the research firm's confidence in AppLovin's non-gaming advertising business and long-term growth drivers. AppLovin has raised its non-gaming revenue expectations from $250 million to $312 million. Oppenheimer has accordingly raised the company's overall revenue forecast, expecting total revenue to reach $8.6 billion; additionally, the firm also forecasts AppLovin's adjusted EBITDA to be $7.2 billion, indicating an EBITDA profit margin of 83%. Oppenheimer expects that AppLovin will benefit from the recent increase in advertising spending by brands, especially during the holiday shopping season. Additionally, the firm believes that AppLovin is poised to attract new customers through agencies and e-commerce platforms, further expanding its business scope. It is known that AppLovin primarily provides marketing software and platform services to businesses, helping them achieve mobile app user growth, commercial monetization, and market promotion. Its core solutions include AI-driven advertising tools (such as AppDiscovery for precise ad targeting to the target audience) and monetization platforms (such as MAX for optimizing in-app ad revenue).