AppLovin stock seen rising 28% with strong AI ad-tech growth and buyback support in 2026

AppLovin's stock has cooled after a strong 2025 but still shows 28.5% upside with a $603 price target driven by its AI-powered ad-tech platform AXON 2. The company reported strong Q1 FY26 results with 24% revenue growth and high profit margins, alongside $1 billion in share buybacks. Analysts remain bullish due to operating leverage improvements and expanding e-commerce ad opportunities, though valuation and market risks remain. The outlook depends on continued growth in ad pricing and impressions, with potential upside from connected TV ads and downside from platform policy changes by Apple or Google.