Morgan Stanley Lifts AppLovin Corporation (APP) Target on AI-Led Growth Thesis

Company Overview - AppLovin Corporation (NASDAQ:APP) is a California-based company that builds a software-based platform for advertisers to enhance the marketing of their content, operating through two segments: Advertising and Apps [4] Earnings Growth and Analyst Ratings - AppLovin is recognized for its strong earnings growth potential over the next five years, with Morgan Stanley raising its price target from $750 to $800, indicating a potential upside of nearly 31% [1] - Oppenheimer has named AppLovin a top pick, with an 'Outperform' rating and a price target of $835, highlighting the company's dominant ad tech platform for mobile gaming and anticipating revenue and EBITDA compound annual growth rates exceeding 30% from 2025 to 2028 [3] Market Trends and Sector Insights - The internet sector is expected to reward companies with significantly positive Return on Invested Capital (ROIC) from Generative AI or GPU-enabled technologies in 2026, which will be thematically similar to 2025 [2] - Sub-sectors facing disruption uncertainty, such as ridesharing from autonomous vehicles and smaller ad platforms, are likely to trade at lower multiple bands [2]