● Covered by 1 source · 1 reportLow impact1 negative
Applovin stock drops 17% after Q2 revenue misses analyst expectations
Key points
- Applovin's Q2 revenue was $1.92 billion, below the $1.94 billion expectation.
- Stock dropped 17% following the revenue miss.
- CEO Adam Foroughi cited timing of ad model improvements as the reason.
- Piper Sandler downgraded Applovin stock to neutral.
Q2 Revenue Miss and Stock Decline
Applovin, an adtech company, saw its shares decrease by 17% on Thursday after reporting its second-quarter revenue. The company posted $1.92 billion in revenue, falling short of the $1.94 billion analysts had anticipated. Earnings per share met expectations at $3.76.
Reasons for Underperformance
CEO Adam Foroughi stated that the revenue miss was due to the timing of improvements to its advertising models. Applovin is expanding its artificial intelligence-powered adtech model into e-commerce, but the pace of model enhancement was slower than usual during the quarter. Foroughi noted that the next significant performance improvement occurred just after the quarter ended.
Analyst Response
Following the earnings report, Piper Sandler analyst James Callahan downgraded Applovin's stock from overweight to neutral. Callahan also reduced the bank's price target for the stock from $665 to $385, citing uncertainty regarding future beat/raise cadences.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Applovin's stock fell 17% after its second-quarter revenue of $1.92 billion missed analyst expectations of $1.94 billion. The company attributed the miss to slower-than-expected improvements in its advertising models, impacting its expansion into e-commerce with AI-powered adtech.