Applovin(US:APP) Zhi Tong Cai Jing·2025-05-09 08:26Group 1 - AppLovin reported strong Q1 performance with revenue of $1.48 billion, a 40% year-over-year increase, exceeding market expectations [1] - The adjusted earnings per share for Q1 were $1.67, also surpassing market forecasts [1] - The company agreed to sell its mobile gaming division to Tripledot Studios to focus on its advertising technology business [1] Group 2 - Morgan Stanley raised its target price for AppLovin from $350 to $420, maintaining an "overweight" rating due to optimism about future growth [1] - Morgan Stanley is more optimistic about AppLovin's execution in core advertising products, estimating non-gaming products contributed approximately $150 million in revenue in Q2 [1] - UBS also raised its target price for AppLovin from $450 to $475, maintaining a "buy" rating based on profit growth outlook [1] Group 3 - UBS increased its EBITDA forecast for AppLovin for FY2026 by 7.4% to $6.1 billion, reflecting faster growth in web-based advertising revenue [2] - The faster transition to self-service advertising platforms is expected to stimulate new advertiser demand, although it may not guarantee sustained revenue acceleration [2] - UBS noted the willingness to meet advertiser needs, which should help further stimulate demand from new advertisers [2]