US tech darling AppLovin (NYSE:APP) is set to release earnings on Wednesday, which could add volatility to the shares this week.
APP – Daily Chart
APP shares created a double top near $750 at the end of 2025. The price then slumped to $400, where the bounce to $460 took hold.
AppLovin stock jumped by 7% on Monday as Jefferies shrugged off the 40% YTD decline, maintaining an $860 target and predicting a Q4 revenue beat this week.
The mobile technology company has faced skepticism about AI’s potential impact on its advertising platform, with fears centred on new tools from CloudX, Meta Audience Network, and Google Genie. Jeffries’ James Heaney dismissed these worries as “overblown risks.” He argued that the current price dislocation doesn’t reflect AppLovin’s actual business strength.
At the current valuation, AppLovin trades at 15 times Jefferies’ fiscal year 2027 EBITDA estimates. That looks cheap for a company that Heaney expects to grow revenue by over 50% in fiscal year 2026.
The analyst’s research and conviction are based on survey work and expert checks. Both AppLovin’s core gaming business and its growing e-commerce division showed positive trends in the research.
Other analysts have backed AppLovin after the stock tumbled, with Needham upgrading shares to Buy with a $700 target, due to strength in e-commerce revenue growth for 2026. Piper Sandler maintained an $800 price target, citing consistent year-over-year growth in sellers.
Markets have settled after recent aggressive selling, particularly in the technology sector, with the Nasdaq 100 up another 1% during Monday’s session. That could provide extra fuel for a rally in APP if the company can beat revenue expectations.
AppLovin releases earnings after the market close on Wednesday, and the company has beaten expectations in the last four quarters, with surprise upside of 3.38% to 35.16%.
