AppLovin's Q3 Outperformance Supports Further Growth, RBC Says

11:57 AM EST, 11/05/2026 (MT Newswires) -- AppLovin (APP) delivered stronger-than-expected profitability in Q3 despite higher training and computing costs, with further growth opportunities tied to improvements in the company's AI-driven advertising platform, RBC Capital Markets said Thursday in a report. On Wednesday, AppLovin reported Q3 earnings and revenue that topped Wall Street estimates. Growth in the gaming segment during the partial rollout of the company's architecture for training larger models was a key driver of the results, RBC said. "Additional data remains the primary lever" for improving overall platform performance, particularly in e-commerce, RBC said. While acknowledging competition in the sector, management believes AppLovin's data set provides a differentiated advantage, the report said. RBC raised its price target on AppLovin stock to $520 from $500 and maintained its outperform rating. Price: 351.99, Change: +80.24, Percent Change: +29.53