On August 21, AppLovin Corporation declined 3.04% in regular trading, trading at $303.84/share, with turnover of $208 million, hitting a fresh near-term low.
On the news front, Loop Capital on August 20 slashed its price target on AppLovin from $860 to $600 while maintaining a Buy rating. This followed Citigroup cutting its target from $650 to $600 on August 18 and Benchmark lowering its target from $500 to $440 on August 17. The concentrated wave of target price reductions has created sustained selling pressure.
The downgrades trace back to AppLovin's Q2 earnings released on August 6, where revenue of $1.92 billion grew 53% year-over-year but missed the consensus estimate of $1.94 billion. Management attributed the shortfall to a major AI model architectural improvement being delayed from Q2 into Q3. BofA Securities previously downgraded the stock to Neutral, citing insufficient evidence supporting the company's 30% long-term growth target. The current Wall Street consensus target stands at $522.68, still implying significant upside from current levels.
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