TLDR
- AppLovin’s share of e-commerce advertising budgets rose 169 basis points to 11% in 2026, the largest gain among ad networks surveyed by Jefferies
- 23% of Q2 survey respondents were new AppLovin advertisers who joined in Q4 2025, up from 7% in the Q1 survey
- Half of surveyed advertisers tested AppLovin’s AI features; six reported ROAS gains from AI video tools
- Q1 earnings beat estimates with EPS of $3.56 vs. $3.44 expected, revenue of $1.84B vs. $1.77B expected, up 58.9% year-over-year
- Analysts hold a Moderate Buy consensus with an average price target of $668.45; APP opened at $520.43 on Friday
AppLovin picked up the most ground of any ad network in a Jefferies survey of 30 e-commerce advertisers conducted in Q2 2026.
The company’s share of advertiser budgets climbed 169 basis points between Q4 2025 and full-year 2026, landing at 11% of total spend. That was the biggest gain in the survey.
AppLovin held a top-three position for both budget share and return on ad spend (ROAS). TikTok was close behind, adding 147 basis points to reach 10%.
Meta and Google both lost share, though the survey attributed this to advertisers spreading their budgets rather than cutting them.
APP opened at $520.43 on Friday, sitting above its 50-day moving average of $507.88 and its 200-day moving average of $499.10.
New Advertisers Driving Growth
The Q2 survey captured more recently onboarded users. About 23% of respondents had started using AppLovin in Q4 2025, compared to just 7% in the Q1 survey. Those new advertisers grew their spending on the platform throughout the year.
Seventy-three percent of participants said new customer revenue from prospecting campaigns increased, up from 60% in Q1. For discovery campaigns, 60% saw an increase, up from 50%.
Surveyed advertisers now expect total direct-to-consumer ad spend to grow 15% year-over-year in 2026, a jump from the 8% expectation reported in the Q1 survey.
AI Features Gaining Traction
Half of the surveyed advertisers tested AppLovin’s generative AI end cards and AI video features. Six advertisers reported ROAS improvements from the AI video creative tool. Four saw gains from AI end cards.
One-third of respondents tested full campaign setup through AppLovin’s AI tools.
On the earnings front, AppLovin posted Q1 EPS of $3.56, beating the $3.44 consensus estimate. Revenue came in at $1.84 billion, above the $1.77 billion estimate, and was up 58.9% year-over-year.
Net margin was 64.29% and return on equity hit 219.37%. Analysts project full-year EPS of $15.93.
The analyst picture is broadly positive. Needham maintained a Buy with a $700 target. Deutsche Bank also kept Buy with a $660 target. Argus initiated coverage at Buy with a $520 target. JPMorgan kept a Neutral rating, raising its target from $500 to $515. The consensus average target stands at $668.45.
On the institutional side, Vanguard, State Street, Geode Capital, T. Rowe Price, and Morgan Stanley all added to their positions in Q4. Institutional investors collectively own 41.85% of the stock.
Insiders have been selling. Over the last 90 days, insiders sold 393,000 shares worth roughly $197 million. CFO Matthew Stumpf sold 9,052 shares at $600 in late May. Insider Victoria Valenzuela sold 20,000 shares at $565.89 in early June.
APP has a 52-week range of $332.32 to $745.61 and a market cap of $174.83 billion.
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