AppLovin trades at $260.25, down 61.38% year to date, after second-quarter revenue of $1.92 billion missed estimates by 0.94% and adjusted EBITDA fell below guidance on higher computing costs. CEO Adam Foroughi attributed the miss to a slower pace of model improvement, and Wells Fargo, Piper Sandler and Bank of America all downgraded the stock, while a securities class action added pressure. Even so, Q2 revenue grew 52.8% year over year, net income reached $1.27B and free cash flow was $863M, and Q3 revenue guidance is $2.055B-$2.085B. The average analyst target of $476.85 implies 83.2% upside, while UBS's Stephen Ju has the highest target at $790.00 and expects the stock to about triple. The article notes that the next earnings report will be the first real test of the recovery case.
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