BofA Downgrades AppLovin to Neutral, Slashes Price Target to $400
APP is trading near its 52-week low of $319.5 (1.5% above the low).
Summary
BofA Securities downgraded AppLovin to Neutral from Buy and cut its price target to $400 from $430, citing insufficient evidence that the company can sustain 30% year-over-year revenue growth from its large mobile gaming base. The downgrade comes a week after Q2 revenue of $1.92 billion missed consensus by $20 million, and the stock fell another 5% to $322.11, making it the worst S&P 500 performer on Tuesday. This follows a 17.88% plunge on August 6 after the earnings miss and heavy insider selling by the founder in June. The analyst's skepticism about AI model scaling adds to mounting concerns, with shares now down 52% year-to-date and trading near a 52-week low.
At the time of this announcement, APP was trading at $324.23 on NASDAQ in the Technology sector, with a market capitalization of approximately $108.5B. The 52-week trading range was $319.50 to $745.61. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.