On August 7, AppLovin Corporation rose 3.89% in regular trading, trading at approximately $342.59 per share, with turnover of $265 million. The stock staged a technical rebound following the prior session's roughly 19% plunge triggered by Q2 revenue and guidance missing expectations.

Morgan Stanley published a research note stating that AppLovin's underwhelming Q2 results reflected a short-term execution issue rather than structural headwinds. The firm noted that the company failed to deploy a planned major AI model upgrade during the quarter, which was the primary factor behind the underperformance. AppLovin reaffirmed its long-term growth target of over 30% and reported no signs of demand weakness or competitive pressure. Its gaming advertising business delivered an estimated 39% year-over-year revenue growth in Q2, significantly outperforming the broader mobile gaming market where consumer spending declined 6%. Despite the supportive note, Piper Sandler had downgraded the stock from Overweight to Neutral with a target price cut from $665 to $385, while Deutsche Bank maintained its Buy rating with a reduced target of $580.

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