1318 ET - AppLovin looks like it can keep up its two main growth vectors, UBS analysts say in a note. For one, gaming advertising budgets continue to grow at a stronger clip than the analysts imagined, they say. Non-endemic client spending also continues to increase, despite being capped as AppLovin allows only some advertisers to use the product currently, the analysts say. Outsized revenue on both sides is driven by ongoing improvements in AppLovin's recommendation engines, which is delivering strong return on ad spend, the analysts say. "This trend in our view can sustain, and allows us to underwrite a stronger for longer scenario," they say, raising their price target on the stock to $740 from $686. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

February 12, 2026 13:18 ET (18:18 GMT)

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