Evercore ISI initiated coverage of AppLovin with an Outperform rating and an $835 price target. The firm sees the mobile gaming ad platform building a formidable performance advertising business for e-commerce, expanding its total addressable market. This move beyond its core gaming dominance is the key driver behind the optimistic call.

The brokerage projects combined mobile gaming and e-commerce ad spend will fuel revenue and EBITDA growth exceeding 30% annually through 2028. Evercore forecasts AppLovin capturing high single-digit to low double-digit penetration of direct-to-consumer e-commerce ad spend, which could translate to roughly $3.4 billion in revenue from that channel alone by FY28.

Supporting the thesis, Evercore points to strong recent momentum from third-party tracking and industry checks. The firm believes AppLovin can sustain its current valuation near 36x FY26 EV/EBITDA, backed by operating leverage and improving game monetization. Investors will get more clarity on this e-commerce progress when AppLovin reports fourth-quarter results on February 11.