AppLovin Live: APP Soars Day After Earnings Release
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Applovin May Have Another 50% of Upside
At the moment, analysts have an average price target of $228.65 (14% potential upside), with the high-end estimates coming in at $300 (50% potential upside).
Fueling upside, CFO Matt Stumpf provided guidance for Q2 2025, projecting advertising revenue between $1.195 billion and $1.215 billion and adjusted EBITDA ranging from $970 million to $990 million.
In addition, management reiterated its “focus on enhancing machine learning models and refining e-commerce and web advertising tools to sustain growth and profitability,” added Seeking Alpha.
Shares of mobile tech company, Applovin (NASDAQ: APP | APP Price Prediction) are up another 12% to $340.53.
All after the company crushed earnings. Earnings per share of $1.67 easily trounced estimates of $1.44. That was also up from just 67 cents a year earlier. Revenue soared to $1.48 billion, which was above expectations for $1.38 billion. Ad revenue jumped 71% year over year. Even better, the company’s second-quarter advertising business guidance was also above expectations, with its midpoint of $1.2 billion up 69% on the year.
Analysts at Jefferies reiterated their buy rating on PLTR with a price target of $530 – up from $460. “Despite highly impressive 71% y/y ad rev [revenue] growth, we believe the fastest growth still lies ahead,” said analysts led by Brent Thill, as quoted by Seeking Alpha.
Morgan Stanley reiterated its overweight rating with a price target of $420. “APP delivered a strong beat as the core gaming ads outperformed and non-gaming continued to build momentum with an estimated ~$150mn contribution to 1Q,” said the firm.
Even Wells Fargo reiterated its overweight rating with a price target of $405, up from $386. “Much better-than-expected 1Q results/2Q guide vs. a backdrop of investor trepidation created by multiple short reports,” said the firm.
Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.
He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.
Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.
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