10:49 AM EDT, 09/12/2025 (MT Newswires) -- AppLovin ( APP ) is likely to benefit from continued momentum in gaming amid growing mobile game user acquisition spending, Wedbush Securities said in a client note on Friday.

The mobile technology provider's earlier-than-expected global expansion late in the third quarter of this year and the Oct. 1 launch of a self-serve tool could drive growth in the near term, Wedbush analysts, including Alicia Reese, said.

Wedbush said annual mobile games user acquisition spend exceeds $30 billion across all advertising platforms, with third-party mobile games accounting for about $15 billion.

"We expect the current year to benefit handsomely from ongoing momentum in gaming as AppLovin ( APP ) benefits from more players and increased spending on user acquisition, and layering in ecommerce," Reese wrote. The brokerage expects the user acquisition share to continue growing, accelerated by the impact of the legal battle between Apple ( AAPL ) and Epic Games.

Epic Games sued Apple ( AAPL ) in 2020 over its app store policies.

"We view our current estimates as conservative, as a combination of ecommerce success and web store migration should drive significant growth for at least the next three years," Reese said.

During the second-quarter earnings call last month, Chief Executive Adam Foroughi told analysts that AppLovin ( APP ) results during the period were driven by strengths in gaming advertising. "Based on all the opportunity in front of us in our core market, we are confident we can sustain 20% to 30% year-over-year growth driven by just gaming," Foroughi said at the time, according to a FactSet transcript.

AppLovin ( APP ) "quietly" launched its Axon Ads Manager, and the company plans to open the platform to most major international markets on Oct. 1, according to Foroughi.

AppLovin's ( APP ) 20% to 30% revenue growth target is supported by supply and demand expansion in mobile games, "as it layers on international growth and ecommerce, then expands beyond mobile games," Reese said. "We believe AppLovin's ( APP ) moat is secure; even as competitors will ultimately close the gap toward its proprietary technology."

Wedbush reiterated its outperform rating on the stock and raised the price target to $725 from $620.

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