AppLovin (APP) Positioned for Ad Growth Beyond Gaming, Says Jefferies

Core Viewpoint - AppLovin Corporation is recognized as a significant player in the AI and mobile advertising market, with Jefferies raising its price target to $860.00 and maintaining a "Buy" rating due to strong growth potential in advertising and margin scalability [1][2]. Group 1: Revenue Growth Potential - Jefferies analysts anticipate a near and medium-term upside to revenue estimates in AppLovin's advertising business, indicating confidence in its growth trajectory [2]. - The company is expected to maintain over 30% growth in its advertising business over the next few years, driven by expansion into e-commerce and other verticals beyond gaming [3]. Group 2: Profitability and Margin Potential - Analysts project that AppLovin may achieve a long-term adjusted EBITDA margin of 80%, showcasing its significant profitability potential [3]. Group 3: Market Position and Expansion - AppLovin is viewed as an "emerging leader in the mobile advertising market," with expectations of expanding its operations beyond gaming, which is seen as a catalyst for future revenue growth [2][3].