Applovin Stock Surges on S&P 500 Inclusion and Analyst Upgrade

Applovin shares delivered a stellar performance last week, climbing nearly 19% as two powerful catalysts converged. The mobile marketing platform’s stock received a significant boost from its upcoming addition to a major US index and a substantial price target increase from a prominent analyst.

Strong Fundamentals Pave the Way

The company’s impressive ascent is built on solid financial results. Applovin recently reported a remarkable 77% revenue surge to $1.26 billion for the second quarter of 2025, driven primarily by the performance of its AI-powered advertising platform, Axon 2.0.

A key strategic shift has further strengthened Applovin’s position. The recent completion of the sale of its mobile games division to Tripledot Studios allows the company to concentrate fully on its higher-margin advertising technology business. Market experts point to the company’s proprietary technology as a critical competitive advantage in the growing digital advertising space.

Index Inclusion Creates Institutional Demand

The primary driver behind last week’s rally came from S&P Dow Jones Indices, which announced after market close on Friday, September 5, that Applovin would join the prestigious S&P 500 index. The formal inclusion will occur before market open on Monday, September 22, with Applovin replacing MarketAxess Holdings.

This development triggers automatic purchasing activity from index funds and ETFs that track the S&P 500, creating substantial institutional demand. Such technical factors often provide significant momentum for newly added stocks as fund managers adjust their portfolios to mirror the index composition.

Should investors sell immediately? Or is it worth buying Applovin?

Analyst Confidence Adds Momentum

Adding to the positive sentiment, Wedbush analyst Alicia Reese substantially raised her price target for Applovin on Friday, September 12. The upgrade reflected confidence in the company’s sustainable growth prospects within its core gaming and e-commerce client segments.

Trading activity reflected this optimism, with shares closing Friday’s session up 1.87% at $582, capping an already strong week of gains.

Future Growth Catalysts on the Horizon

Investors are watching several upcoming developments that could further influence Applovin’s performance:

• The formal S&P 500 inclusion on September 22 is expected to significantly impact trading volume
• International expansion of web-based advertising campaigns for US advertising clients, commencing October 1
• Broader rollout of the self-service AXON platform for e-commerce customers scheduled for the fourth quarter

The majority of market analysts maintain an optimistic outlook, viewing the company’s positive growth trajectory as firmly intact.