1231 ET - Morgan Stanley analysts say there's still a lot to like about AppLovin, even if its latest quarterly results missed the mark. "2Q displayed short term misexecution, not structural headwinds," the analysts say, citing management's commentary that they were unable to roll out a planned major model improvement until the beginning of the third quarter, driving weaker-than-expected results in the second quarter. AppLovin continues to target more than 30% long-term growth, and didn't observe weaker demand or stiffer competition, offering encouraging signs, the analysts say. Additionally, despite the tough results, gaming ads still significantly outperformed the market, the analysts say. "We believe the runway for APP to outperform the gaming industry may be significantly longer than appreciated," the analysts say. Shares fall 19%, to $336.95.