Edgewater Research cut estimates for both AppLovin and Unity, saying the mobile gaming macro environment "seems to be decelerating slowly" while competition from both Meta and Alphabet is rising.

AppLovin's user acquisition performance and back-end impression share are both seen as stable at industry leading levels, versus "rapidly expanding" previously, the firm tells investors in a research note.

Shares of AppLovin are down 7.9% in morning trading while Unity is down 5.7%.