Omar Dessouky, an analyst from Bank of America Securities, reiterated the Buy rating on AppLovin. The associated price target remains the same with $580.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Omar Dessouky’s rating is based on AppLovin’s strong financial performance and strategic initiatives. The company reported a 9% quarter-over-quarter revenue increase in Q2, which was in line with Bank of America’s expectations and exceeded the broader market guidance. Despite some investor expectations for even higher growth, the results were consistent with existing financial models. The company’s EBITDA margin was robust at 81%, and the exclusion of its divested gaming portfolio from financials suggests a focused business strategy.
Looking ahead, Dessouky anticipates significant growth potential for AppLovin, particularly in the fourth quarter and into 2026. This optimism is driven by the upcoming launch of a large advertiser referral program and the activation of global audiences, which are expected to boost average advertiser spending. Additionally, the company’s commitment to technological readiness and strategic timelines supports the expectation of becoming a key player in the advertising space, akin to giants like Meta and Google. Despite some execution risks, Dessouky maintains a price objective of $580, reflecting confidence in AppLovin’s growth trajectory and market dominance.
In another report released on August 1, Loop Capital Markets also reiterated a Buy rating on the stock with a $650.00 price target.
Based on the recent corporate insider activity of 105 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APP in relation to earlier this year.