AppLovin Corporation (NASDAQ:app) is one of the the new most profitable stocks to buy right now. On February 5, Wedbush analyst Michael Pachter cut the company’s price target on AppLovin from $800 to $465, while maintaining an outperform rating. This valuation reset explains softer industry sentiment, regulatory headwinds and recent data from competitors in the e-commerce sector.

Despite these near-term pressures, Wedbush remains confident in AppLovin’s dominant position in mobile game advertising and believes its strategic expansion into e-commerce and connected TV will provide long-term protection against competitive threats.

On Jan. 26, Needham upgraded AppLovin to Buy from Hold with a $700 price target, citing greater confidence in the company’s e-commerce revenue trajectory in 2026. The firm raised its 2026 e-commerce sales estimates to $1.45 billion from $1.05 billion, projecting that growth from the launch of the self-service platform and increased advertiser spending will more than offset typical first-quarter seasonality. This update also takes advantage of a recent pullback in the stock from its monthly highs, with Needham seeing a bullish case where AppLovin’s revenue could follow a similar growth path to TikTok’s.

AppLovin Corporation (NASDAQ:APP) creates a software-based platform for advertisers to improve the marketing and monetization of their content in the US and internationally. It operates through two segments: Advertising and Applications

While we recognize the potential of APP as an investment, we believe some AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.

READ THE FOLLOWING: 30 stocks that should double in 3 years i 11 Hidden AI Stocks to Buy Right Now.

Disclosure: no. This article is originally published in Monkey Insider.