Citi Reaffirms Buy Rating on AppLovin Amid Slower E-Commerce Ramp, Keeps $710 Target

AppLovin Corporation (NASDAQ:APP), a leading provider of AI-powered advertising solutions, continues to attract attention from Wall Street as one of the most profitable stocks in the S&P 500. On June 22, 2026, Citi analysts removed the company’s “upside 90-day catalyst watch” while reaffirming a Buy rating and a $710 price target. The decision reflects the bank’s view that e-commerce clients will scale their spending more slowly after the general availability launch of Axon, AppLovin’s key advertising technology platform.

The catalyst watch removal does not signal a bearish shift, analysts said; rather it recalibrates expectations for near-term triggers. Citi remains confident in AppLovin’s long-term growth story, particularly as its AI-driven ad solutions gain traction across both gaming and non-gaming verticals.

Earlier in June, Edgewater Research upgraded AppLovin from Neutral to Outperform, citing an improving revenue trajectory and expanding margins. That positive sentiment was echoed by Piper Sandler, which raised its price target to $665 from $650 and maintained an Overweight rating. Piper Sandler characterized the company’s Q1 results as a “clean beat and raise,” noting that revenue rose 59% year-over-year and came in 3.8% above consensus—the largest percentage beat since the first quarter of 2025.

JPMorgan also weighed in last month, with analyst Cory Carpenter lifting the firm’s price target to $515 from $500 while keeping a Neutral rating. Carpenter acknowledged a Q1 earnings beat and Q2 guidance that aligned with street expectations, though he stopped short of upgrading the stock.

AppLovin reported first-quarter earnings per share of $3.56 on revenue of $1.84 billion, surpassing the consensus estimate of $1.78 billion. The company provides end-to-end AI-based advertising technology for businesses in the U.S. and internationally, positioning itself to capitalize on the growing shift toward automated, data-driven ad purchasing.

While AppLovin remains a compelling investment story, some market analysts note that certain AI stocks may offer even higher upside potential with less downside risk, particularly those benefiting from tariff-related onshoring trends. For investors seeking exposure to undervalued AI plays, independent research has highlighted alternatives that could double in value over the next three years. (Disclosure: The author holds no positions in any of the stocks mentioned.)