On August 12, AppLovin Corporation declined 3.12% in regular trading, trading at $308.5/share, with turnover of $14.39 billion. The decline was primarily driven by BTIG sharply reducing its price target on the stock from $574 to $408 while maintaining a Buy rating, compounding existing selling pressure from BofA Securities' recent downgrade.

BofA downgraded AppLovin to Neutral from Buy and lowered its price target to $400 from $430, citing insufficient evidence to support the company's 30% long-term annual revenue growth target. BofA cut its 2027 revenue growth forecast to 23% from 31% and reduced its consumer segment estimate to $2 billion from $2.3 billion, expressing uncertainty around the sustainability of self-learning model growth.

The sustained analyst downgrades follow AppLovin's Q2 results, in which the company reported revenue of $1.92 billion, up 53% year-over-year but below the consensus estimate of $1.94 billion. A delayed AI model upgrade deployment was identified as the primary factor behind the shortfall. Q3 revenue guidance of $2.06 billion to $2.09 billion also came in slightly below market expectations.

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