AppLovin's High Valuation and Expansion Beyond Gaming Prompt Analyst Caution

Applovin Corp (NASDAQ:APP) stock shot higher on Thursday following the upbeat quarterly print.

On Wednesday, the company reported third-quarter revenue of $1.2 billion, up 39%, beating analyst consensus estimates of $1.13 billion. Applovin increased the company’s share repurchase program by $2 billion.

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It expects fourth-quarter revenue of $1.24 billion—$1.26 billion.

Multiple Wall Street analysts rerated the stock after the quarterly results.

JP Morgan analyst Cory Carpenter maintained AppLovin with a Neutral and raised the price target from $160 to $200.

Needham analyst Bernie McTernan reiterated AppLovin with a Hold.

Benchmark analyst Mark Zgutowicz maintained AppLovin with a Sell and a $66 price target.

JP Morgan: Cory A. Carpenter views AppLovin’s third-quarter results as a substantial beat, with guidance for the fourth quarter surpassing analyst expectations.

Carpenter highlights the Software Platform’s impressive 17% sequential growth, driven by technology upgrades to the Axon algorithm, which significantly outpaced the typical 4%- 5% growth target.

The gaming sector fueled this strong performance, while the company’s e-commerce pilot exceeded expectations. Management now expects e-commerce to become a significant growth driver in 2025 ...

Full story available on Benzinga.com