10:56 AM EDT, 10/22/2025 (MT Newswires) -- AppLovin ( APP ) is the dominant player in the mobile games' user acquisition advertising space and its ad tech is slated to become more performant the larger the company's scale, Deutsche Bank said in a note emailed Wednesday.

Additional gross ad spend will lead to "more signal for the model" which in turn will generate better performance and more ad spend, creating a deeper moat with rivals, the note said.

Deutsche Bank also highlighted that AppLovin ( APP ) is expanding into the e-commerce advertising space, which is much larger than the mobile game in-app advertising total addressable market.

Also, the company may penetrate larger categories such as financial services, media and entertainment, healthcare, and others, the note said.

The investment firm believes AppLovin ( APP ) may beat consensus estimates for 2027 top line even with a "modest" 5% to 10% penetration of the incremental ad spend by e-commerce companies.

Deutsche started coverage of AppLovin ( APP ) with a buy rating and $705 price target.

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