AppLovin fell 18% in premarket trading after reporting second-quarter revenue of $1.92 billion, missing the $1.94 billion LSEG consensus, while earnings per share matched estimates at $3.76.
CEO Adam Foroughi said the shortfall stemmed from the timing of advertising-model upgrades, with meaningful performance gains arriving just after quarter-end as the company expands its AI-driven adtech into e-commerce.
Piper Sandler downgraded the stock to neutral and cut its price target to $385 from $665, saying it still liked management and the business but had growing doubts about AppLovin's ability to keep beating and raising guidance.
Revenue still rose 53% year over year, but the miss and softer outlook extended investor concern already highlighted by disappointing third-quarter projections.