Applovin’s Strategic Showcase in London Captivates Investor Attention

The spotlight is on Applovin this week as the mobile technology firm presents at the Nasdaq Investor Conference in London. Market participants are keenly focused on the company's trajectory, driven by its industry-leading, AI-powered advertising platform. This appearance comes at a time when analyst sentiment toward the stock remains decidedly bullish, reinforced by a series of exceptional financial results.

The foundation for the current optimism is a remarkably strong third-quarter report for 2025. Applovin’s figures not only surpassed expectations but demonstrated explosive growth across key metrics:

• Revenue surged 68% year-over-year to $1.41 billion.
• Net profit saw an even sharper increase, climbing 93% to $836 million.
• Adjusted EBITDA reached $1.16 billion, reflecting a substantial margin of 82%.
• Free cash flow grew by 92%, exceeding $1 billion.

This robust cash generation has enabled an aggressive capital return strategy. Management allocated $571 million solely in Q3 to share repurchases, underscoring confidence in the company's intrinsic value. Looking ahead, guidance for the fourth quarter projects revenue in the range of $1.57 billion to $1.60 billion, suggesting sequential growth of 12% to 14%.

Analyst Confidence Reinforced

In the lead-up to the London event, prominent financial institutions have reaffirmed their positive stance. On December 8, analysts at Piper Sandler reiterated their "Overweight" rating, maintaining a price target of $800 per share. This target implies an approximate upside potential of 15% from recent levels, citing the enduring strength of Applovin's software platform and its high-margin profile.

Should investors sell immediately? Or is it worth buying Applovin?

Similarly, UBS has expressed optimism, raising its price target to $810. The bank's increased valuation is rooted in a firm belief in the compelling nature and superior performance of Applovin's AI-driven advertising models.

Core Technology and Market Expansion

Central to this success story is the "Axon 2.0" engine, a sophisticated AI technology that connects advertisers with users more effectively than traditional systems. While the broader programmatic advertising market is expanding, Applovin's 68% growth rate indicates the company is capturing market share at a pace that outruns competitors, including The Trade Desk.

A key topic for discussion at the investor conference is likely to be the next phase of expansion. The e-commerce advertising vertical is viewed as a promising new segment for Applovin to conquer. Any specific announcements regarding strategic moves into this space could provide additional momentum for the stock.