Stock Markets April 9, 2026 10:33 AM

Macquarie Sees AppLovin’s Shift Into E-Commerce as a Long-Term Growth Catalyst

Analyst points to mobile ad dominance, Axon-driven margins and a large addressable market ahead of 2026 e-commerce rollout

By Marcus Reed
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Macquarie has started coverage of AppLovin with an outperform rating and a $710 price target, arguing the company's expansion into e-commerce advertising is an underappreciated multi-year growth opportunity. Analyst Aaron Lee estimates a total addressable market of $120 billion that could rise to $180 billion by 2030, cites positive channel checks ahead of a full first-half 2026 launch, and highlights AppLovin’s established mobile advertising position and strong recent revenue and EBITDA growth driven by its Axon AI model.

Macquarie Sees AppLovin’s Shift Into E-Commerce as a Long-Term Growth Catalyst
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Key Points

  • Macquarie initiated coverage of AppLovin with an outperform rating and a $710 price target, citing e-commerce advertising as a major growth avenue.
  • Analyst Aaron Lee estimates a total addressable market for AppLovin’s e-commerce advertising of $120 billion, potentially expanding to $180 billion by 2030, and reports positive channel checks ahead of a full first-half 2026 launch.
  • Macquarie highlights AppLovin’s mobile advertising leadership via its MAX mediation platform and attributes roughly 75% CAGR in revenue and EBITDA over the past three years to the Axon AI model; the firm forecasts 37% three-year revenue and EBITDA CAGRs and EBITDA of $11.6 billion by 2028.

Macquarie began official coverage of AppLovin with an outperform recommendation and a $710 price objective, telling investors the mobile advertising technology company’s push into e-commerce advertising could unlock substantial, multi-year growth despite the stock’s sizable year-to-date decline.

Analyst Aaron Lee described AppLovin’s e-commerce initiative as "an attractive, multi-year growth opportunity," and put the potential total addressable market at $120 billion, with upside to $180 billion by 2030. The firm said its channel checks ahead of the platform’s full e-commerce rollout in the first half of 2026 bolstered confidence that AppLovin has assembled a competitive advertising solution.

Macquarie pointed to AppLovin’s entrenched position in mobile advertising as the basis for expanding into e-commerce. The note emphasized the company’s MAX platform as the leading mediation solution in mobile gaming. Lee also credited the Axon AI model with driving roughly 75% compound annual growth in both revenue and EBITDA over the past three years.

On valuation, Macquarie noted the stock has fallen about 40% year to date and framed the decline as an opportunity. In the firm’s view, those moves already reflect investor concerns about AI and heightened competitive pressures, creating a more attractive entry point ahead of the expected full e-commerce launch.

"At these levels, we believe concerns around AI and competition are reflected in shares, and see the pullback as an attractive opportunity to build a position ahead of the upcoming full launch of the e-commerce platform," Lee wrote.

Lee underscored AppLovin’s recent profitability and growth metrics, saying the company "handily surpasses Software's Rule of 40." He cited advertising revenue growth of 70% and an EBITDA margin of 82% for 2025, and added that those figures imply AppLovin is meeting what he described as the "Rule of 150."

Looking further ahead, Macquarie projected three-year revenue and EBITDA compound annual growth rates of 37%, and forecast EBITDA reaching $11.6 billion by 2028. The report noted these forecasts could prove conservative depending on how quickly AppLovin scales its e-commerce efforts.


Context and implications

Macquarie’s initiation frames AppLovin’s business as a convergence of mobile advertising strength, advanced ad-serving technology and an adjacent e-commerce market opportunity. The firm’s estimates and channel-check assessments position the company as a potential beneficiary across advertising and digital commerce sectors if the rollout matches expectations.

Risks

  • Investor concerns about AI and competitive dynamics have already pressured the stock - indicated by a roughly 40% year-to-date decline - which could continue to weigh on market sentiment for the advertising and tech sectors.
  • The pace of e-commerce scaling is uncertain; Macquarie acknowledged its revenue and EBITDA forecasts could prove conservative depending on how quickly AppLovin expands the new business, introducing execution risk for advertising and e-commerce markets.
  • Competition in digital advertising and e-commerce remains a source of uncertainty; if AppLovin’s e-commerce offering fails to differentiate as expected, projected growth and margin outcomes could be at risk across ad tech and commerce-adjacent sectors.

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