JP Morgan's Top Video Game Stocks Of 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2025
0mins
Should l Buy APP?
Source: Benzinga
JP Morgan Analyst's Video Game Picks: Cory Carpenter highlighted top video game stocks, favoring Take-Two Interactive with a $225 price target due to anticipated success from Grand Theft Auto VI, while projecting revenue growth for Roblox, Electronic Arts, and Take-Two in fiscal 2025.
Market Performance and Projections: The analyst noted varying performance among stocks, with Take-Two and Roblox expected to see significant growth, while Playstudios is projected to decline. Price movements showed slight decreases for most stocks except Electronic Arts, which saw a minor increase.
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Analyst Views on APP
Wall Street analysts forecast APP stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 366.910
Low
465.00
Averages
745.50
High
860.00
Current: 366.910
Low
465.00
Averages
745.50
High
860.00
About APP
AppLovin Corporation is a marketing platform. The Company provides end-to-end software and artificial intelligence (AI) solutions for businesses to reach, monetize and grow their global audiences. Its advertising solutions include a comprehensive suite of tools including AppDiscovery, MAX, Adjust, Wurl and Axon Ads Manager. AppDiscovery is powered by AXON, its AI-powered advertising engine, and matches advertiser demand with publisher supply through auctions at vast scale and at microsecond-level speeds. MAX is its monetization solution, utilizing an advanced in-app bidding technology that optimizes the value of a publisher’s advertising inventory by running a real-time competitive auction, driving more competition, and higher returns for publishers. Adjust is its measurement and analytics marketing platform which provides marketers with the visibility, insights, and data needed to scale their apps marketing and drive more informed results. Wurl is its connected TV (CTV) platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Margin Improvement: The company's gross margin increased from 84.7% a year ago to 88.9%, while operating costs were reduced by 9%, including a 21% cut in sales and marketing expenses, indicating substantial progress in efficiency and profitability.
- Strong Cash Flow: AppLovin generated $1.3 billion in free cash flow for Q4 and $3.95 billion for the full year, with net debt decreasing from $2.8 billion to $1 billion, reflecting improved financial health and strong cash generation capabilities.
- Optimistic Future Outlook: The company projects Q1 revenue between $1.745 billion and $1.775 billion, representing growth of 50% to 53%, with adjusted EBITDA expected between $1.465 billion and $1.495 billion, highlighting ongoing growth potential amid market challenges.
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Market Reactions and Concerns: The market reacted negatively to Apple's latest earnings report, leading to a sell-off, as investors expressed concerns over competition and the company's future growth potential, particularly in mobile game advertising.
Future Projections: Apple projects a revenue growth of 52% for the next quarter, with expectations of maintaining a high EBITDA margin of 84%, although analysts are seeking more substantial growth indicators.
Investment Outlook: Despite the current volatility, analysts suggest that Apple remains a strong investment opportunity, with a potential upside of 78% based on updated price targets, indicating confidence in the company's long-term recovery and profitability.
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- Margin Improvement: The company's gross margin improved from 84.7% to 88.9% in Q4, while operating costs decreased by 9%, including a 21% reduction in sales and marketing expenses, indicating substantial progress in enhancing profitability.
- Strong Cash Flow: AppLovin generated $1.3 billion in free cash flow in Q4, totaling $3.95 billion for the year, with net debt reduced from $2.8 billion to $1 billion, reflecting effective financial management.
- Optimistic Outlook: The company projects Q1 revenue between $1.745 billion and $1.775 billion, representing a growth of 50% to 53%, and plans to launch a self-service e-commerce platform, further expanding market opportunities despite competitive pressures from Meta.
See More
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- Positive Market Outlook: Morgan Stanley also lowered its target to $720 but retained an Overweight rating, with expectations of a 2% increase in EBITDA for FY26 and FY27, indicating confidence in the company's growth trajectory.
See More
AppLovin Reports Strong Q4 Growth Amid Competition Concerns
- Significant Revenue Growth: AppLovin's Q4 revenue surged 66% year-over-year to $1.66 billion, showcasing the robust performance of its AI ad tech platform Axon 2.0, despite facing competitive pressures that could impact future growth.
- Margin Improvement: The company's gross margin increased from 84.7% a year ago to 88.9%, while operating costs were reduced by 9%, including a 21% cut in sales and marketing expenses, indicating substantial progress in efficiency and profitability.
- Strong Cash Flow: AppLovin generated $1.3 billion in free cash flow for Q4 and $3.95 billion for the full year, with net debt decreasing from $2.8 billion to $1 billion, reflecting improved financial health and strong cash generation capabilities.
- Optimistic Future Outlook: The company projects Q1 revenue between $1.745 billion and $1.775 billion, representing growth of 50% to 53%, with adjusted EBITDA expected between $1.465 billion and $1.495 billion, highlighting ongoing growth potential amid market challenges.
See More
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Apple's Stock Performance: Apple's stock has seen significant volatility, with a drop of nearly 20% following disappointing earnings and increased competition from Meta Platforms, despite a strong revenue growth of 66% year-over-year in Q4 2025.
Market Reactions and Concerns: The market reacted negatively to Apple's latest earnings report, leading to a sell-off, as investors expressed concerns over competition and the company's future growth potential, particularly in mobile game advertising.
Future Projections: Apple projects a revenue growth of 52% for the next quarter, with expectations of maintaining a high EBITDA margin of 84%, although analysts are seeking more substantial growth indicators.
Investment Outlook: Despite the current volatility, analysts suggest that Apple remains a strong investment opportunity, with a potential upside of 78% based on updated price targets, indicating confidence in the company's long-term recovery and profitability.
See More
AppLovin Reports Strong Q4 Growth but Shares Plummet
- Significant Revenue Growth: AppLovin's Q4 revenue surged 66% year-over-year to $1.66 billion, showcasing the robust performance of its AI ad platform Axon 2.0, although the stock has plummeted over 40%, the company's fundamentals remain strong.
- Margin Improvement: The company's gross margin improved from 84.7% to 88.9% in Q4, while operating costs decreased by 9%, including a 21% reduction in sales and marketing expenses, indicating substantial progress in enhancing profitability.
- Strong Cash Flow: AppLovin generated $1.3 billion in free cash flow in Q4, totaling $3.95 billion for the year, with net debt reduced from $2.8 billion to $1 billion, reflecting effective financial management.
- Optimistic Outlook: The company projects Q1 revenue between $1.745 billion and $1.775 billion, representing a growth of 50% to 53%, and plans to launch a self-service e-commerce platform, further expanding market opportunities despite competitive pressures from Meta.
See More
French President Celebrates Successful Rocket Launch of 32 Amazon Leo Satellites
- Successful Rocket Launch: The French president celebrated the successful launch of Europe's most powerful rocket, which deployed 32 Amazon Leo satellites into orbit, marking a significant advancement in Europe's space capabilities and enhancing its competitiveness in the global space market.
- Pause on Tech Security Measures: Ahead of the Trump-Xi Jinping meeting, the Trump administration reportedly paused several critical technology security measures targeting China, a decision that could influence the future trajectory of U.S.-China tech relations and reduce market uncertainties.
- Apple Court Victory: Apple secured a courtroom win as a jury rejected claims from Optis Wireless that it infringed on 4G wireless patents, a result that will help protect Apple's intellectual property and strengthen its market position.
- AI Industry Developments: Elon Musk criticized AI startup Anthropic for alleged bias while announcing a $30 billion funding round that pushed its valuation to $380 billion, highlighting the intense competition and rapid evolution within the AI sector.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
AppLovin Corporation Rated Among Top Meme Stocks to Buy Now
- Earnings Beat: AppLovin Corporation reported Q4 sales of $1.66 billion, a 66% year-over-year increase that surpassed analysts' expectations of $1.60 billion, demonstrating strong performance in a competitive advertising landscape despite margin compression risks.
- Significant Net Income Growth: The company's net income rose 84% year-over-year to $1.10 billion, with diluted EPS at $3.24, exceeding market expectations of $2.95, indicating sustained profitability and boosting investor confidence.
- Analyst Rating Adjustments: Jefferies cut AppLovin's price target from $860 to $700 while maintaining a Buy rating, reflecting an optimistic outlook on the company's future performance despite competitive pressures.
- Positive Market Outlook: Morgan Stanley also lowered its target to $720 but retained an Overweight rating, with expectations of a 2% increase in EBITDA for FY26 and FY27, indicating confidence in the company's growth trajectory.
See More
