Analysts Continue to See Big Runway for AppLovin Despite Results

Dow Jones08-07

1231 ET - Morgan Stanley analysts say there's still a lot to like about AppLovin, even if its latest quarterly results missed the mark. "2Q displayed short term misexecution, not structural headwinds," the analysts say, citing management's commentary that they were unable to roll out a planned major model improvement until the beginning of the third quarter, driving weaker-than-expected results in the second quarter. AppLovin continues to target more than 30% long-term growth, and didn't observe weaker demand or stiffer competition, offering encouraging signs, the analysts say. Additionally, despite the tough results, gaming ads still significantly outperformed the market, the analysts say. "We believe the runway for APP to outperform the gaming industry may be significantly longer than appreciated," the analysts say. Shares fall 19%, to $336.95.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment