Wedbush Lowers AppLovin (APP) PT to $465, Cites Valuation Reset, Industry Headwinds

Core Viewpoint - AppLovin Corporation is considered one of the most profitable new stocks to buy, despite recent valuation adjustments and industry challenges [1][6]. Group 1: Analyst Ratings and Price Targets - Wedbush analyst Michael Pachter lowered the price target for AppLovin from $800 to $465 while maintaining an Outperform rating, reflecting softer industry sentiment and regulatory challenges [1][6]. - Needham upgraded AppLovin from Hold to Buy with a price target of $700, citing increased confidence in the company's e-commerce revenue trajectory for 2026, raising estimates from $1.05 billion to $1.45 billion [3]. Group 2: Market Position and Strategic Expansion - AppLovin holds a dominant position in mobile gaming advertising and is strategically expanding into e-commerce and Connected TV, which is expected to provide long-term protection against competitive threats [2]. - The growth from the launch of a self-service platform and increased advertiser spending is projected to offset typical first-quarter seasonality [3]. Group 3: Company Overview - AppLovin builds a software-based platform for advertisers to enhance marketing and monetization of content, operating through two segments: Advertising and Apps [4].