Applovin shares plunge 17% on Q2 revenue miss

Published Aug 6, 01:36 PM UTC

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.