On August 6, AppLovin Corporation declined 16.12% overnight, trading at $351.7/share, with turnover of $276,600. The selloff was triggered by the company's Q2 earnings report, which showed revenue falling short of market expectations.

AppLovin reported Q2 revenue of $1.924 billion, missing the analyst consensus estimate of $1.935 billion, despite representing approximately 53% year-over-year growth. Earnings per share came in at $3.76, matching or slightly exceeding expectations versus $2.39 in the year-ago quarter. The company's Q3 revenue guidance of $2.06 billion to $2.09 billion was roughly in line with the analyst estimate of $2.08 billion, failing to provide upside surprise.

The magnitude of the decline was amplified by elevated expectations heading into the report. Multiple institutions had raised price targets in prior days, with UBS lifting its target to $798 and Wedbush projecting results above guidance. The stock had gained over 3% in the sessions preceding the report, fully pricing in optimistic scenarios. With revenue missing and forward guidance offering no upside catalyst, significant profit-taking pressure materialized immediately after the release.

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