11:36 AM EDT, 08/07/2025 (MT Newswires) -- AppLovin ( APP ) delivered solid Q2 results backed by gaming share gains and growing momentum in ecommerce, Morgan Stanley said in a note Thursday, adding that the upcoming launch of the company's self-serve ad platform could be a key catalyst for future growth.

Morgan Stanley called the 9% sequential increase in ad revenue a "remarkable accomplishment," particularly following a 16% growth in the previous quarter. The firm said AppLovin ( APP ) continues to see steady double-digit growth in ad supply managed through MAX, which remains a tailwind for gaming ad results.

The firm said it's also encouraging that the company may be adding "more inventory in non-gaming apps" like news, sports, social, and music.

The Axon Ads Manager, a self-serve web advertising portal set to launch Oct. 1, could be the company's next big growth driver, Morgan Stanley said. The platform is expected to streamline onboarding, widen access to non-gaming advertisers and global markets, and eventually support AI-generated ad creation.

The firm maintained its overweight rating on AppLovin ( APP ) and raised its price target to $480 from $460.

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