AppLovin (APP) Price Prediction and Forecast 2025-2030 (March 21)

After hitting an all-time high of $525.15 last month, AppLovin Corp.’s (NASDAQ: APP) share price tumbled more than 35% afterward, due to a pending class action lawsuit and to short seller reports. The software company’s stock rose 3.3% on Thursday and closed at $306.74. That is still down 5.3% since the beginning of the year, despite a 4.5% pop in the past week. Compared to a year ago, the stock is 335.0% higher, far outperforming the S&P 500 and the Nasdaq in that time.

Since the company went public in 2021, its stock price is up 428.8%. So, this has clearly been a top growth stock that investors have done well owning in recent years. AppLovin has been among the top tech stocks seeing a lot of love from the market, but is that still true with the recent overhang?

These days, the company focuses on providing software solutions that enhance the marketing and monetization of online advertisers. AppLovin, there are certainly catalysts worth considering, and we’ll get to those shortly. It continues to benefit from strong secular growth trends investors are looking for increased exposure to. As investors continue to pile into such stocks, retail investors appear to be looking to gain outsized exposure ahead of a continued boom.

It is worth remembering that AppLovin did see a more than 90% drawdown from its post-pandemic levels in 2021 in the past. So, is this stock headed for a further beat down, or is its momentum real? Let’s dive into some catalysts and price predictions around where this stock could go for the rest of 2025 through to the end of this decade.

Three Key Drivers for AppLovin

As mentioned, there is plenty on the news front that investors in AppLovin have to contend with. For instance, the analysts covering AppLovin have not been as bullish on this company as many may think, having issued warnings on the stock in the past year or so due to concerns around the company’s fundamentals.

Nonetheless, we see these key drivers propelling AppLovin going forward.

1. AI-Powered Advertising Enhancements 

AppLovin’s Axon AI engine has been a game-changer, optimizing ad targeting and expanding beyond gaming into new categories like e-commerce, fintech, and automotive advertising. During the Q4 2024 earnings call, CEO Adam Foroughi highlighted that for the first time, AppLovin captured a significant share of holiday shopping ad spend—validating that its AI models are effective outside gaming.

• Scaling AI Beyond Gaming: The company initially focused on direct-to-consumer (DTC) brands, but early pilots have shown AI-driven success across multiple verticals. This means any business in any industry could potentially tap into AppLovin’s advertising platform.
• Personalized Advertising With Generative AI: The company is developing automated tools and AI-generated ad creatives to improve engagement. AppLovin’s self-service platform (currently in progress) will eventually allow businesses to run ads autonomously with AI-optimized targeting—a major step toward scaling its reach.

AppLovin’s AI capabilities are proving to be industry-agnostic, opening the door for millions of global advertisers.

2. Expansion Into E-Commerce Advertising

Foroughi described fourth-quarter 2024 as a major milestone, marking AppLovin’s first real penetration into e-commerce advertising. Historically, the company primarily monetized mobile gaming ads, but now retail and consumer brands are joining the platform in large numbers.

• Surging Demand From E-Commerce Brands: Advertisers saw strong return on investment during the holiday season, prompting continued demand for the platform in 2025.
• Pilot Program Scaling Up: While AppLovin hasn’t disclosed the number of e-commerce advertisers, industry checks suggest a significant influx of brands wanting access.
• Self-Service Expansion Is the Next Big Growth Driver: Currently, the company manually onboards advertisers, but in 2025, the launch of automated tools and a self-serve platform will allow thousands of new businesses to join.

E-commerce advertising is set to be a major revenue contributor. Once self-serve tools become operational, adoption could scale exponentially.

3. Strategic Divestment of Mobile Gaming Unit

AppLovin is officially exiting game development—a move that frees up resources to focus entirely on advertising technology.

• $900 Million Sale of Apps Business: AppLovin announced that it has signed an exclusive term sheet to sell its mobile gaming division, with $500 million in cash and $400 million in equity in a private company.
• Why This Matters: The company originally acquired gaming studios to train its AI models, but it was never meant to be a core business. Now that AI is self-sufficient, AppLovin no longer needs to develop its own games.
• Shifting to a Pure Ad-Tech Model: With gaming divested, the company can fully concentrate on expanding its advertising ecosystem—positioning itself as a direct competitor to Google and Meta in the ad tech space.

Divesting from mobile games is a giant pivot for the stock, as it paves the way as a pure advertising technology company.

AppLovin Stock Price Prediction for 2025

Clearly, there are strong reasons for why AppLovin was up as much as it is this year before the recent pullback. Simply put, investors have been banking on AppLovin as a potential AI beneficiary, as a number of AI advancements have fueled customer success and accelerated the company’s adoption and growth rates across the board. If the company can continue to prioritize generating outsized free cash flow and return capital to shareholders to a greater degree, I certainly think this multiple could be warranted. Here’s where the stock could be headed, assuming the company’s multiple stays the same and earnings grow according to analyst estimates.

The current consensus one-year price target for AppLovin is $486.60, which would be a 66.4% gain. On average, 26 analysts covering AppLovin recommend buying shares, three of them with a Strong Buy rating.

24/7 Wall St.’s 12-month forecast projects AppLovin’s stock price to be $505.00. We see the stock continuing its strong growth rate and outperforming analysts’ expectations.

AppLovin Price Target for 2030

We estimate AppLovin’s stock price to be $1,325.00 per share with less than 10% year-over-year revenue growth. Our estimated stock price will be 353.0% higher than the current stock price.

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