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Applovin stock tanks on Q2 revenue miss
CNBC • • business
Key Points:
- Applovin's shares dropped 17% after reporting second-quarter revenue of $1.92 billion, slightly below the expected $1.94 billion, while earnings per share met expectations at $3.76.
- CEO Adam Foroughi attributed the revenue miss to the timing of improvements in the company's AI-powered advertising models, which are being expanded into e-commerce, despite a 53% year-over-year revenue increase.
- Foroughi acknowledged that the pace of model improvements was slower than usual during the quarter, with significant advancements occurring just after the quarter ended.
- Piper Sandler downgraded Applovin's stock to neutral and cut its price target from $665 to $385, citing uncertainty about the company's future beat and raise potential despite confidence in management and market position.
- The downgrade reflects increased caution among analysts regarding Applovin's near-term growth trajectory following the earnings miss.
