AppLovin stock plunges nearly 20% on Q2 revenue miss and weak guidance
AppLovin shares fell nearly 20% on August 6, 2026, after reporting Q2 revenue of $1.92 billion, missing the $1.94 billion consensus. The adtech company cited slower AI model improvements in gaming as the cause. Q3 guidance of $2.055-$2.085 billion also disappointed. Multiple analysts downgraded the stock, slashing price targets. Despite a 53% year-over-year revenue increase and strong margins, investor sentiment turned sharply negative, with the stock losing about half its value since early 2026.
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AppLovin Stock Falls 6% After Analyst Downgrade Following Disappointing Q2 Earnings
AppLovin (NASDAQ: APP) shares slumped nearly 6% on Tuesday, August 11, 2026, continuing a decline following its disappointing second-quarter earnings report released the previous week. The drop was exacerbated by Bank of America Securities analyst Omar Dessouky downgrading the stock from buy to neutral and reducing the price target from $430 to $400 per share. Dessouky expressed concerns that AppLovin may not achieve its long-term target of 30% year-over-year revenue growth, noting recent financial improvements appeared driven mainly by engineer-directed enhancements to gaming models rather than sustainable growth. He also questioned the longevity of efficiency gains from the company's AI-powered analytical capabilities. Despite these concerns, the article suggests the stock weakness may present a buying opportunity for the still high-potential company, which continues to grow at double-digit rates.
AppLovin Stock Plummets to Lowest Level in Over a Year on Weaker-Than-Expected Revenue and Outlook
AppLovin (APP) shares plunged nearly 20% on August 6, 2026, hitting their lowest level in over a year after the ad technology firm reported weaker-than-expected second-quarter revenue and issued a soft third-quarter outlook. The company posted Q2 revenue of $1.92 billion and EPS of $3.76, slightly below analyst forecasts of $1.95 billion and $3.77. Third-quarter revenue guidance of $2.055-$2.085 billion was also below the $2.083 billion consensus. Analysts at William Blair maintained an 'outperform' rating but noted concerns about a potential fundamental slowdown, while Bank of America reiterated a 'buy' rating but slashed its price target from $705 to $430 due to lower expectations for consumer ad and gaming advertising growth. The stock has lost roughly half its value since the start of 2026.
Why AppLovin Stock Tumbled Today
Shares of AppLovin (NASDAQ: APP) fell 19.6% on August 6, 2026, after the adtech company reported second-quarter earnings that missed analyst expectations. Revenue grew 53% year-over-year to $1.92 billion, but fell short of the $1.94 billion consensus. Management cited slower-than-normal model improvement in the core gaming segment as the reason for the underperformance, though the consumer/e-commerce segment remained strong. Adjusted EBITDA rose 58% to $1.61 billion, with an 83% margin. GAAP earnings per share of $3.76 slightly beat estimates of $3.75. Third-quarter revenue guidance of $2.055-$2.085 billion (47% growth at midpoint) also disappointed investors, coming in below the $2.08 billion consensus. The company maintains a long-term growth target of 30% annually. Despite the sell-off, the article suggests the stock may be attractive at a trailing P/E of 26 given its high margins and growth rate.
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AppLovin Stock Tumbles After Q2 Earnings Miss and Weak Guidance
Shares of AppLovin (NASDAQ: APP) fell 19.6% on August 6, 2026, after the adtech company reported second-quarter earnings that missed analyst expectations. Revenue grew 53% year-over-year to $1.92 billion, but fell short of the $1.94 billion consensus. Management attributed the underperformance to slower-than-normal model improvement in the core gaming segment, though the consumer/e-commerce segment remained strong. Adjusted EBITDA rose 58% to $1.61 billion, with an 83% margin. GAAP earnings per share of $3.76 slightly beat estimates of $3.75. The company's third-quarter revenue guidance of $2.055-$2.085 billion (47% growth at midpoint) also disappointed investors, coming in below the $2.08 billion consensus. Despite the sell-off, the article notes that at a trailing P/E of 26, the stock may be attractive if AppLovin can achieve its long-term 30% annual growth target.
Applovin stock tanks 17% on Q2 revenue miss
Shares of adtech giant Applovin fell 17% on Thursday after the company reported second-quarter revenue of $1.92 billion, missing analyst expectations of $1.94 billion. Earnings per share met estimates at $3.76. CEO Adam Foroughi attributed the miss to timing issues in improving the company's AI-powered advertising models as it expands into e-commerce, noting that the next model improvement occurred just after the quarter ended. Revenue still rose 53% year-over-year. Piper Sandler analyst James Callahan downgraded the stock from overweight to neutral, slashing the price target from $665 to $385, citing uncertainty about the company's beat-and-raise cadence going forward.