Applovin Analysts See 'Muted Upside,' Cautious On Company's Success Outside Of Gaming

Core Insights - Applovin Corporation reported strong second-quarter results, driven primarily by its gaming segment, with analysts focusing on future growth in eCommerce [1][3][4]. Financial Performance - Bank of America described the second-quarter results as "okay," with a revenue growth of 9% sequentially, surpassing the 3-5% guidance [3][5]. - JPMorgan noted that the third-quarter guidance exceeded analyst expectations, indicating a positive outlook for the company [4]. Future Outlook - Analysts anticipate "muted upside" for the third quarter, but expect potential estimate revisions for the fourth quarter and the next fiscal year due to the upcoming self-serve platform launch [4][5]. - Applovin plans to launch its self-serve platform for referrals on October 1, with a global rollout expected in the first half of fiscal 2026 [5][6]. Market Strategy - The self-serve platform will allow advertisers to buy outside the U.S. for the first time, and the company plans to utilize paid marketing to attract new advertisers post-launch [6][7]. - Analysts are monitoring the scaling of Applovin's platform in relation to the broader advertising shift towards AI enablement [8]. Analyst Ratings and Price Targets - Bank of America maintained a Buy rating with a price target of $580, while JPMorgan and Goldman Sachs maintained Neutral ratings, raising their price targets to $425 and $445, respectively [8]. Stock Performance - Applovin's stock increased by 13.0% to $441.48, with a year-to-date rise of 36.7% in 2025 [9].