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California State Teachers Retirement System boosted its position in shares of AppLovin Corporation (NASDAQ:APP – Free Report) by 50,874.8% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 178,017,633 shares of the company’s stock after buying an additional 177,668,406 shares during the quarter. California State Teachers Retirement System owned approximately 53.20% of AppLovin worth $91,720,025,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of APP. Greenland Capital Management LP bought a new stake in AppLovin in the second quarter valued at $548,000. Washington Trust Advisors Inc. raised its holdings in AppLovin by 30.9% in the 2nd quarter. Washington Trust Advisors Inc. now owns 144 shares of the company’s stock worth $74,000 after purchasing an additional 34 shares in the last quarter. Ameritas Advisory Services LLC raised its holdings in AppLovin by 161.2% in the 2nd quarter. Ameritas Advisory Services LLC now owns 2,131 shares of the company’s stock worth $1,098,000 after purchasing an additional 1,315 shares in the last quarter. Wedmont Private Capital lifted its position in shares of AppLovin by 0.7% in the 2nd quarter. Wedmont Private Capital now owns 7,624 shares of the company’s stock worth $3,865,000 after purchasing an additional 54 shares during the period. Finally, HB Wealth Management LLC lifted its position in shares of AppLovin by 2.1% in the 2nd quarter. HB Wealth Management LLC now owns 7,355 shares of the company’s stock worth $3,790,000 after purchasing an additional 150 shares during the period. Institutional investors own 41.85% of the company’s stock.

Analyst Ratings Changes APP has been the topic of several research analyst reports. Wedbush reduced their price target on shares of AppLovin from $640.00 to $610.00 and set an “outperform” rating on the stock in a research report on Thursday, August 6th. Weiss Ratings upgraded shares of AppLovin from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 6th. Phillip Securities raised AppLovin from a “moderate buy” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. Morgan Stanley reduced their target price on AppLovin from $720.00 to $650.00 and set an “overweight” rating on the stock in a report on Thursday, August 6th. Finally, The Goldman Sachs Group decreased their target price on AppLovin from $585.00 to $465.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $538.61.

Get Our Latest Analysis on AppLovin AppLovin Stock Performance Shares of NASDAQ APP opened at $320.56 on Monday. AppLovin Corporation has a 1 year low of $297.50 and a 1 year high of $745.61. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30. The firm has a 50-day moving average of $394.59 and a 200 day moving average of $440.62. The stock has a market cap of $107.28 billion, a P/E ratio of 24.64, a price-to-earnings-growth ratio of 0.68 and a beta of 2.49.

AppLovin (NASDAQ:APP – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.76 earnings per share for the quarter, hitting analysts’ consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The business had revenue of $1.92 billion for the quarter, compared to analysts’ expectations of $1.94 billion. During the same quarter in the prior year, the company earned $2.39 earnings per share. The business’s revenue was up 52.8% compared to the same quarter last year. As a group, sell-side analysts expect that AppLovin Corporation will post 15.53 EPS for the current fiscal year.

Insider Buying and Selling at AppLovin In other AppLovin news, Director G Jr sold 3,076 shares of the business’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $521.29, for a total value of $1,603,488.04. Following the sale, the director directly owned 120,444 shares of the company’s stock, valued at approximately $62,786,252.76. The trade was a 2.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Eduardo Vivas sold 163,910 shares of the firm’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $504.06, for a total value of $82,620,474.60. Following the transaction, the director owned 6,785,087 shares of the company’s stock, valued at $3,420,090,953.22. The trade was a 2.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 271,152 shares of company stock worth $135,295,830. 12.81% of the stock is owned by insiders.

AppLovin Company Profile (Free Report)

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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The Trade Desk just announced a sweeping workforce cut and a parade of executive replacements, while rivals AppLovin and Magnite pull further ahead. Whether this signals a genuine strategic reset or a company quietly shrinking to survive is the question…

Ad-tech is splitting into winners and stragglers at midday, it seems. The Trade Desk (NASDAQ:TTD | TTD Price Prediction) stock is slumping faster than the stock market overall as the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is only down 0.31% to $770.78. Meanwhile, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.15% to $718.76.

Trade Desk stock is the day’s standout laggard after the company disclosed a sharp organizational reset built around a double-digit workforce reduction. Shares of Trade Desk are down 4% to $14.55, extending a brutal run that has Trade Desk stock down 62% year to date (YTD).

Programmatic peers Magnite (NASDAQ:MGNI) and AppLovin (NASDAQ:APP) form the natural comparison set for today’s move. Both peers have delivered materially stronger operating results than The Trade Desk over the past several quarters, and neither has published a same-day catalyst that would move alongside this news. Magnite stock is down 1% to $24.31, while AppLovin shares are up 3% to $322.43.

A 15% Workforce Cut Reframes the Story, according to Trade Desk The Trade Desk announced plans to reduce its total workforce by 15% as part of an organizational realignment, redirecting resources toward higher-priority growth areas and operational effectiveness. The reduction is expected to be substantially completed during Q3 2026, and The Trade Desk expects to incur $39 million to $51 million in cash restructuring and related charges, primarily for employee severance and benefits.

That backdrop makes the cut easier to read. The Trade Desk’s Q2 2026 revenue of $715.06 million grew just 3% year over year (YoY), missing the $751.55 million consensus, while non-GAAP EPS of $0.34 fell short of the $0.40 estimate. The Trade Desk’s adjusted EBITDA compressed to $241.28 million from $270.75 million a year earlier, and CEO Jeff Green stated that the quarter “did not meet the standard we set for ourselves.”

Reallocation or Right-Sizing? A cut approaching a sixth of the staff amounts to a statement about demand, and the selling reflects that view. Management frames the move as reallocation toward higher-priority growth areas, which is the language of a company choosing where to compete.

The less generous reading is that the growth those roles were hired to support didn’t arrive. Trade Desk stock has lost the majority of its value this year, which gives that version room to breathe. Nothing disclosed today settles which interpretation wins, and the severance charge buys a smaller cost base rather than any new revenue.

Leadership turnover complements the workforce action, with The Trade Desk naming a new CFO, CMO, Chief Commercial Officer, Chief Business Development Officer, and COO across recent quarters. That kind of turnover at the top usually accompanies a strategy reset, and today’s headcount action reads like the operational side of the same effort. Customer retention held above 95%, which is the one operating metric that meaningfully argues against a demand-loss interpretation.

Peers Tell a Different Story Magnite delivered 11.2% revenue growth in Q2 2026 with CTV Contribution ex-TAC up 36% YoY, and management raised full-year 2026 contribution ex-TAC growth guidance to a range of 13% to 14% from at least 11%. Magnite’s adjusted EBITDA margin expanded to 37%, and the company positioned its SpringServe platform and new agentic AI orchestration layer as the growth engine pulling ad dollars off direct-sold channels.

AppLovin posted 52.8% revenue growth with an adjusted EBITDA margin of 84% and net income of $1.27 billion, funding $551.3 million of share buybacks in a single quarter. AppLovin’s market capitalization sits near $97.08 billion, and its AI-driven advertising engine has become the standard the rest of the group is measured against.

Both peers are running the AI-driven ad-tech playbook that The Trade Desk is now trying to catch up to with its Kokai suite, Audience Unlimited pricing model, and the upcoming Zuma platform upgrade. The competitive gap won’t close in a quarter, and today’s headcount action doesn’t buy any new capability by itself.

What to Watch Next The workforce reduction is expected to be substantially completed during Q3 2026, so the next earnings print becomes the first real test of whether the reallocation reaccelerates growth or simply widens margin on a smaller business. Investors can watch for signs that Q4 guidance stabilizes the top line and that The Trade Desk’s joint business plan cohort, which grew 38% YoY on a base of 217 clients, keeps compounding. The Trade Desk’s cash and short-term investments of about $1.5 billion give management balance-sheet room to execute, and $269 million remains on the buyback authorization after $78 million of Q2 repurchases.

Investors may want to keep an eye on whether Trade Desk stock finds a durable floor near current levels or slides further alongside the broader repricing of high-multiple growth names. Trade Desk stock carries a P/E near 14.5x, which limits the runway for further multiple compression. Shareholders should size their positions modestly until management produces something more than a smaller cost base to back up the reset language.

Contact [email protected] for any questions or corrections.

AppLovin prints $1.9 billion quarters and 84% margins, yet two disciplined investors studied the model and walked away. Their reason cuts to the heart of what separates a durable moat from a very good algorithm.

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Shares of AppLovin (NASDAQ:APP | APP Price Prediction) closed at $319.05 on September 2, marking a 52.7% year-to-date decline for a stock that spent late 2025 above $656. On the September 3, 2026, episode of The Investor’s Podcast Network’s We Study Billionaires, hosts Kyle Grieve and Shawn O’Malley devoted a full teardown to the mobile ad platform. Grieve framed the show as “TIP843: AppLovin (APP): The 30-Bagger Down More Than Half.” After walking through the model, both hosts passed.

An Ad Platform Bigger Than Pinterest, Snap, and Reddit Combined The scale is the first thing that lands. Grieve noted that “the advertising spend on AppLovin is more than Pinterest, Snapchat’s and Reddit’s combined revenue.” That comparison puts the AXON 2 engine in context for readers outside ad tech. AppLovin runs a marketplace where mobile game publishers and, increasingly, e-commerce brands bid for user attention through the company’s recommendation algorithm.

Asset-light in this context means the platform monetizes traffic without owning the audience: no content studio, no consumer app, minimal capex. O’Malley pointed to “over 79% over the last 12 months” adjusted EBITDA margins and $7.6 million in revenue per employee as evidence of that model. Q2 2026 revenue reached $1.92 billion, up 52.82% year over year, with an 84% adjusted EBITDA margin, per AppLovin’s Q2 2026 8-K exhibit filed with the SEC.

Founder Who Said No to a Billion Dollars Grieve recounted CEO Adam Foroughi’s 2015 decision to turn down an acquisition offer: “He walked away hoping for a valuation closer to a billion dollars. To give you an idea of how big a mistake that would have been, the company is now valued at a little over a hundred billion dollars today.” AppLovin’s market cap stands near $107.2 billion as of September 3, 2026. The anecdote set up the hosts’ capital-allocation debate.

Where the Two Hosts Diverged on Capital Allocation Grieve graded the buyback program highly. AppLovin repurchased 1.1 million Class A shares for $551.3 million in Q2 2026 and 6.4 million shares for $2.58 billion across full-year 2025. O’Malley took a more skeptical view of overall capital allocation, citing prior M&A history that included studio acquisitions later divested. The company recorded a $188.9 million goodwill impairment and a $99.4 million loss from discontinued operations in FY 2025. Grieve graded buybacks well; O’Malley graded the full record as average. Both positions stayed on the table.

Why Both Investors Passed Grieve’s core concern was the durability of an algorithmic moat: “There’s just something I don’t really like about a business whose core advantage is a really good algorithm, because it feels like another business can just write a better algorithm and then poof, there goes your business model.” He layered on saturation risk, noting roughly 55% of top mobile games are already on Max.

O’Malley framed the same worry through platform economics. With Google and Meta, “it’s sort of transcended just the algorithm” because network effects anchor the business regardless of which quarter’s ranking model wins. AppLovin looks more like a pure technology bet in his framing.

The hosts invoked a circle-of-competence argument, the Warren Buffett idea that investors should only underwrite businesses they can accurately model. Both said ad-tech algorithms sit outside theirs, echoing their earlier caution on Trade Desk (NASDAQ:TTD). Grieve’s base case used a 17% revenue CAGR, 77% EBITDA margins, and a 13x EV/EBITDA multiple to reach a $480 price target implying a 9% CAGR. His verdict: “My thoughts on this business are that it’s a pass. While it certainly offers upside, I just don’t think I could find myself getting comfortable enough with the business to ever have it in the intrinsic value portfolio or my personal account.”

What Investors Should Take From Two Careful Passes Foroughi is running the buyback aggressively, and Q3 2026 guidance calls for revenue of $2.055 billion to $2.085 billion at roughly 83% adjusted EBITDA margin. The CEO’s conviction is expressed in capital returns. Grieve and O’Malley’s restraint is a reminder that two disciplined investors can pass on one of the best businesses either of them has ever modeled without predicting a break. Readers weighing AppLovin after the drawdown should decide whether an algorithm is the kind of moat they are willing to hold through a competitive shock.

Contact [email protected] for any questions or corrections.

Kokai Zuma just handed The Trade Desk a rare green day in a brutal year, but two rivals with equally loud AI launches barely moved. The divergence reveals how differently Wall Street is grading the same playbook across ad tech…

Three ad-tech names shipped agentic AI in the same stretch, and the market has judged them on separate execution records rather than a shared sector trade. The Trade Desk (NASDAQ:TTD | TTD Price Prediction) stock is up 5% to $14.25 in morning trading after unveiling Kokai Zuma, the latest release of its Kokai platform for planning, buying, and measuring advertising across the open internet. That gain reads as a product-launch response inside a year-long derating that remains firmly in place.

For contrast, Invesco QQQ Trust (NASDAQ:QQQ) is down 0.2% to $715.26, so this pop is company-specific, driven by The Trade Desk’s product news. Trade Desk stock was down 64% year to date through Friday’s close, leaving today’s bounce a small step against a very steep slide. The real question is whether Kokai Zuma reshapes the trajectory or simply steadies a name that has become a show-me story on Wall Street.

Kokai Zuma Delivers Agentic AI and a New Measurement Layer The Trade Desk said Kokai Zuma adds agentic AI capabilities and a simpler measurement framework, and builds on the platform’s AI forecasting engine across inventory prediction, campaign outcome modeling, and Koa’s real-time agentic capabilities. The company also reported that recent Kokai enhancements produced an average 32% improvement in cost-per-acquisition performance in initial results.

The release brings Conversion Lift enhancements, improved reporting, a more flexible Report Builder, and workflow upgrades aimed at the daily trader experience. It follows priorities Trade Desk CEO Jeff Green outlined on the Q2 2026 call, when he conceded revenue growth was “below our expectations and below the standard we hold ourselves to.”

Second-quarter revenue at The Trade Desk rose 3% year over year to $715 million, and Q3 2026 guidance calls for revenue of at least $650 million and adjusted EBITDA of approximately $160 million. Management assumed no meaningful improvement in the macro backdrop, a conservative posture that Zuma is meant to counterweight through usability wins and stronger campaign outcomes.

AppLovin and Magnite Show Why the Sector Isn’t Trading in Sync Meanwhile, AppLovin (NASDAQ:APP) stock is down 0.2% to $316.99, essentially flat despite the loudest growth number in the group. AppLovin’s Q2 2026 revenue of $1.92 billion grew 53% year over year, and Q3 guidance of $2.055 billion to $2.085 billion implies 46% to 48% growth at an 83% adjusted EBITDA margin.

That growth story hasn’t rescued the shares. AppLovin stock was down 53% year to date, trading at a trailing earnings multiple of 25x on trailing twelve-month revenue of $6.83 billion. Our prior AppLovin coverage at 247wallst.com unpacks whether that compressed multiple is signal or trap.

Magnite (NASDAQ:MGNI) stock is down 0.8% to $23.50, quiet after its own agentic push. Magnite recently unveiled Magnite Orchestration and has said it believes the platform can become an infrastructure layer for agentic advertising, with Disney Advertising, Publicis Media Exchange, Dentsu and DIRECTV working on components of the AI suite. Magnite stock was up 46% year to date, and Q2 2026 connected-TV contribution ex-TAC hit $97 million, up 36% year over year, now 51% of total contribution ex-TAC.

Trade Desk Valuation Sits Well Below the Group Trade Desk stock trades at a forward earnings multiple of 11x against the Internet Services industry’s 20x, a discount that reflects the derating and demands proof before bargain-hunters commit. Zacks Investment Research currently carries Trade Desk at a Zacks Rank #4 (Sell), a reminder that near-term earnings momentum still runs against the shares.

Pressure at The Trade Desk is concentrated in Food & Drink and Home & Garden verticals as consumer-packaged goods brands face geopolitical tensions, inflation and consumer softness. Management called automotive an area of strength overall while noting tariff impact, and CPG plus autos together account for 25% of platform spend. That customer concentration is why a product launch matters but doesn’t close the case on its own.

What to Watch Investors will look for Zuma adoption signals from major agency partners and whether the 32% cost-per-acquisition improvement claim scales beyond initial cohorts. Follow-through above Friday’s close on Trade Desk stock would matter, given how thin the bounce is against the year-to-date drawdown.

Given the current volatility, traders should size their Trade Desk share exposure due to the downside risk. Letting any Kokai Zuma-driven upside act as a bonus on top of a modest starter position keeps their allocation flexible if agency uptake takes longer than the launch narrative suggests.

Contact [email protected] for any questions or corrections.

Key Takeaways Digital Turbine is expanding through app growth, international gains, AI and the Orange partnership.AppLovin is boosting ad efficiency with AI while expanding into consumer advertising and new verticals.Digital Turbine shares surged 158.5%, while AppLovin fell 32.9% over the past year. Digital Turbine, Inc. (APPS - Free Report) and AppLovin Corporation (APP - Free Report) are two ad-tech players benefiting from the increasing use of AI to improve mobile advertising, user acquisition and monetization. Digital Turbine is positioning itself as an end-to-end mobile growth platform connecting advertisers, publishers, carriers and device manufacturers, while AppLovin is using its AI-powered advertising technology to improve campaign performance and expand into new advertiser categories. The key question for investors is which company offers the stronger long-term growth opportunity.

The Case for APPSDigital Turbine continues to expand its role in the mobile application ecosystem by serving advertisers, publishers, carriers and device OEMs through its two complementary businesses. Its App Growth Platform enables publishers to monetize users through display, native and video advertising, while allowing advertisers and agencies to participate in programmatic and real-time bidding. In fiscal first-quarter 2027, App Growth Platform revenue rose 55.9% to $56.6 million, with advertising exchange revenues benefiting from the continued onboarding and growth of new publishers and demand partners.

Digital Turbine is also benefiting from improving international traction. On Device Solutions revenues increased 15.2% to $110 million, primarily reflecting improved international performance, including higher new-device volumes and revenue per device in international markets. The company uses its relationships with mobile carriers and OEMs to connect consumers with applications and content directly on their devices, giving it an opportunity to participate in the app economy beyond traditional advertising channels.

AI is becoming an important part of Digital Turbine's platform evolution. The company is integrating AI into its core intelligence systems to improve targeting, recommendations and real-time optimization across apps, devices and on-device surfaces. Its collaborations with Google Cloud and Databricks are designed to accelerate the data and AI strategy, while management said these tools are helping the company optimize its data to drive better results for platform partners and advertisers and attract new partners seeking improved yields and returns on advertising spend.

The company's alternative app distribution strategy provides another avenue for expansion. Digital Turbine entered into a strategic partnership with Orange, which serves 340 million customers across 26 countries in EMEA. Through the agreement, Digital Turbine plans to bring its alternative app distribution platform and SingleTap technology to Orange subscribers during the latter half of fiscal 2027. This gives the company an opportunity to expand its distribution capabilities through a major telecom network and strengthen its presence across international markets.

Management's confidence is reflected in its fiscal 2027 outlook, which calls for $650-$670 million in revenues and $145-$155 million in adjusted EBITDA. With the App Growth Platform scaling, international On Device Solutions gaining traction, AI capabilities advancing and alternative distribution expanding through the Orange partnership, Digital Turbine has several distinct levers to support its longer-term growth.

The Case for APPAppLovin continues to strengthen its position in digital advertising through its integrated platform spanning AppLovin Ads, MAX, Adjust and Wurl. The company is benefiting from improving advertising efficiency, with net revenue per installation increasing 58% in the second quarter of 2026 despite a 2% decline in installation volume. This reflects improving monetization efficiency as AppLovin generates more revenue from each installation.

AppLovin's AI-powered advertising technology remains central to its growth strategy. The company continues to enhance its Axon AI recommendation system, with investments in architecture that allow more complex models to benefit from additional training compute. Management is also improving creative tools and ad formats to help advertisers optimize campaigns and achieve better outcomes. Continued model improvements are expected to support advertising performance and encourage greater spending on the platform.

The company's consumer advertising business provides another avenue for expansion beyond gaming. Advertiser spending in the consumer vertical reached a record level in the second quarter, finishing 28% above fourth-quarter 2025 levels despite the seasonal slowdown. Management believes that adding more advertiser categories to its auction can substantially expand the opportunity ahead, with gaming improvements and consumer expansion supporting its view that the business can potentially compound at roughly 30% annually over the longer term.

AppLovin is also broadening its advertiser base through the public launch of AppLovin Ads Manager. The company is initially targeting mid-market advertisers, where its platform currently performs best, while planning to expand toward the long tail as its data and technology compound. At the same time, AppLovin is pursuing opportunities in new verticals such as e-commerce and connected TV, which could expand its addressable market beyond mobile gaming.

Management's confidence is reflected in its third-quarter 2026 outlook, which calls for $2.06-$2.09 billion in revenues and $1.71-$1.74 billion in adjusted EBITDA, implying an adjusted EBITDA margin of approximately 83%. The guidance incorporates continued model improvements, expansion of the consumer business and seasonal strength. With AI capabilities advancing, advertiser categories expanding and new opportunities emerging across e-commerce and connected TV, AppLovin has several distinct levers to support its longer-term growth.

How Does the Zacks Consensus Estimate Compare for APPS & APP?The Zacks Consensus Estimate for Digital Turbine’s current fiscal-year sales and EPS implies growth of 16.8% and 53.6%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 9.5% rise in sales and 33.7% growth in earnings. The consensus estimates for EPS for the current and next fiscal year have increased 2 cents and 9 cents over the past 30 days to 86 cents and $1.15, respectively.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AppLovin's current financial-year sales and EPS implies growth of 40% and 54.7%, respectively, from the year-ago period’s actuals. For the next financial year, the consensus estimate indicates 27.5% growth in sales and 28.5% growth in earnings. The consensus estimate for EPS for the current and next fiscal year has decreased 50 cents and $1.45 over the past 30 days to $15.53 and $19.95, respectively.

Image Source: Zacks Investment Research

Stock Performance of Digital Turbine & AppLovinShares of Digital Turbine have skyrocketed 158.5% in the past year, whereas AppLovin has declined 32.9%.

Image Source: Zacks Investment Research

Stock Valuations of APPS & APPDigital Turbine is trading at a forward price-to-sales (P/S) multiple of 1.91, above its median of 0.79 in the past three years. AppLovin’s forward 12-month P/S multiple sits at 10.81, below its median of 15.98 in the past three years.

Image Source: Zacks Investment Research

Digital Turbine or AppLovin: Which is the Better Bet Now?While AppLovin remains an attractive ad-tech player with strong AI capabilities, expanding consumer advertising operations and a broadening addressable market, Digital Turbine currently appears to hold the edge for investors. The company’s rapidly growing App Growth Platform, improving international On Device Solutions business, AI-driven optimization initiatives and alternative app distribution strategy provide multiple avenues for growth. In addition, Digital Turbine’s significantly lower valuation and stronger recent stock performance offer greater upside potential, while its improving execution and fiscal 2027 outlook support the growth story. With accelerating platform momentum, new distribution opportunities and a more favorable valuation, Digital Turbine offers a more compelling opportunity.

Digital Turbine currently carries a Zacks Rank #2 (Buy), whereas AppLovin currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors in AppLovin Corporation (APP - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $190.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for AppLovin shares, but what is the fundamental picture for the company? Currently, AppLovin is a Zacks Rank #3 (Hold) in the Technology Services industry that ranks in the Bottom 33% of our Zacks Industry Rank. Over the last 60 days, three analysts have increased their earnings estimates for the current quarter, while five have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $4.00 per share to $3.95 in that period.

Given the way analysts feel about AppLovin right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

AppLovin has shed more than half its value this year while its advertising engine keeps printing record numbers, and now a single valuation figure is forcing investors to choose a side.

An oversold bounce is showing up in ad-tech name AppLovin midday Friday, and the move stands apart because large-cap technology is slightly lower and the broad market is close to flat. That mismatch matters because today’s gain in AppLovin stock is a single-name rebound in a name the market has been selling all year.

AppLovin (NASDAQ:APP | APP Price Prediction) stock is up 4% to $324.49, extending a modest rally in a name that had been in near-vertical decline. AppLovin stock was down 54% year to date (YTD) through Thursday’s close, which frames the session’s move as a small recovery from deeply oversold levels.

The Invesco QQQ Trust (NASDAQ:QQQ) is down 0.3% to $718.76. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.1% to $771.62, so AppLovin stock is bouncing against its own sector’s direction today.

Why the Bounce Is Happening Without a Fresh Catalyst No new AppLovin announcement, filing, contract, earnings release, or analyst upgrade has been verified today. The mechanism appears to be a technical bounce after months of heavy selling.

The derating accelerated after AppLovin reported Q2 2026 results on August 5. Revenue of $1.92 billion grew 53% year over year (YoY) but landed just below the midpoint of guidance, and adjusted EBITDA finished below its guided range. Management attributed the shortfall to timing, saying the next step-up in advertising model performance landed only after quarter end and that demand was not the problem.

CEO Adam Foroughi told analysts that “Q3 is off to a strong start, and the business is back on the trajectory we expect.” AppLovin’s Q3 2026 revenue guidance of $2.055 billion to $2.085 billion implies 46% to 48% YoY growth, with adjusted EBITDA margin at 83%. The company also divested its apps portfolio in 2025 to focus entirely on advertising, which sharpens the model and concentrates the story.

A 25x Trailing P/E After the Slide AppLovin now trades at a trailing P/E ratio of 25x, a sharp reset from the multi-hundred multiple carried at last year’s peak. Trailing twelve-month revenue is $6.83 billion, up 60.6% YoY, and the operating margin sits at 77.4%, well above the company’s three-year average of 60.8%.

Under the hood, AppLovin’s MAX publisher earnings grew double digits quarter over quarter and consumer-vertical advertiser spend set a record 28% above the Q4 2025 seasonal peak. Q2 free cash flow reached $863.3 million, and management returned $551.3 million to shareholders through buybacks during the quarter. Those figures argue that the business has kept compounding even as the multiple compressed.

The bear case is real, too. Analyst price-target cuts and execution risk in AppLovin’s e-commerce expansion have compounded the sell-off, and the CEO, CFO, CTO, Chief Legal Officer, and a director were each listed with disposal-coded transactions at $308.77 on August 20. Retail sentiment is split, with some traders treating the decline as an overreaction and pointing to potential buybacks and short covering, and others expecting further downside.

Peers Point to Broader Ad-Tech Pressure Ad-tech peers Trade Desk (NASDAQ:TTD) and Magnite (NASDAQ:MGNI) have traveled very different paths this year, illustrating how uneven the group has been. Trade Desk CEO Jeff Green stated the June quarter “did not meet the standard we set for ourselves,” reinforcing that programmatic advertising has faced real macro pressure at the DSP layer. Magnite, in contrast, has been a bright spot with strong connected-TV growth and a raised full-year outlook.

AppLovin’s advertising engine has kept expanding while some peers stumbled, yet AppLovin stock has been punished anyway. Investors weighing a bull case need to decide whether a 25x multiple compensates for slowing growth expectations, higher compute costs, and continued model-cycle timing risk. AppLovin has argued that additional compute is worth it when it drives incremental revenue, though that trade shows up as near-term margin variability.

What to Watch Investors can watch for a hold above Thursday’s close on AppLovin stock and for volume that confirms today’s bid. A follow-through session Monday would strengthen the case that mid-August marked a short-term low for AppLovin stock.

Traders may also look for further insider activity and any updated analyst notes on AppLovin, since target cuts have been part of the derating. Given AppLovin’s beta above 2 and the possibility that model-improvement cycles continue to introduce revenue timing volatility, investors should keep their exposure modest until the trend improves.

Contact [email protected] for any questions or corrections.

AppLovin (NASDAQ:APP | APP Price Prediction) trades at $305.77, while the average Wall Street analyst target sits at $526.39. That gap implies roughly 72% of upside if the Street is right, and one bank thinks the disconnect is far wider.

AppLovin runs an AI-powered mobile advertising platform built around its AXON recommendation engine, which places ads inside mobile games and increasingly in e-commerce and consumer apps. Wall Street focuses on two factors: extraordinary margins (an 84% adjusted EBITDA margin in the latest quarter) and management’s belief the auction technology can compound revenue at roughly 30% annually long term.

APP is one of few large-cap ad-tech names where growth, cash generation, and buybacks accelerate even as the share price collapsed.

A 54% YTD Drop Despite Another Earnings Beat APP has fallen 54.62% year to date and sits roughly 59% below its 52-week high of $745.61. The stock is also down 25.87% over the past month alone.

The catalyst was Q2 2026 earnings on August 5, 2026. AppLovin delivered EPS of $3.76 versus a $3.7549 consensus, but revenue of $1.92 billion missed the $1.94 billion consensus by 0.94%. That was the first revenue miss after three consecutive beats. Management blamed timing, saying the “pace of meaningful model improvement was lighter than normal during the quarter” and the next AXON upgrade landed just after quarter-end.

Revenue still grew 52.82% year over year, adjusted EBITDA margin expanded to 84%, and free cash flow hit $863.32 million. Investors punished the miss because APP is a story stock where model cadence drives sentiment.

UBS Sees a Path to $790 and 158% Upside One analyst doubled down. UBS analyst Stephen Ju maintains a Buy rating with a $790 price target, trimmed only slightly from $798 after Q2. Against the current $305.77 price, that implies roughly 158% of upside, well above consensus.

UBS’s thesis rests on three pillars: continued monetization gains from AXON 2.0, which lifts return on ad spend for developers; expansion beyond mobile gaming into e-commerce and consumer ads, where consumer advertiser spend finished 28% above Q4 2025 levels in a seasonally slow quarter; and operating leverage, where roughly 88% gross margins mean revenue growth flows through to cash at rates few software peers match.

Of 32 analysts tracked, 7 rate APP Strong Buy, 22 Buy, and 3 Hold, with zero Sell or Strong Sell ratings. Post-earnings updates were mostly reiterations with modest target trims. The bull-case timeline hinges on Q3, where management guided revenue to $2.055 billion to $2.085 billion and said the business is “off to a strong start” after the post-quarter model release.

APP Fell Alone While Ad-Tech Peers Diverged The ad-tech group diverged sharply. Two peers rallied while APP and one other collapsed, sharpening the case that APP trades on company-specific stress.

Trade Desk (NASDAQ:TTD) has cratered CITE_25 after its own Q2 miss. At CITE_26 against a CITE_27, implied upside is roughly CITE_28. Consensus splits CITE_29, and revisions have leaned bearish.

Unity Software (NYSE:U) has moved the other way, up CITE_30. At CITE_31 versus a CITE_32, upside is around CITE_33. Ratings run CITE_34, with recent revisions turning upward after a Q2 EPS beat.

Magnite (NASDAQ:MGNI) trades at CITE_35 against a CITE_36, roughly CITE_37 of implied upside. It has rallied CITE_38 on CTV strength, and the analyst mix is CITE_39. Targets have drifted higher.

The largest analyst-implied upside sits on APP. Targets are not guarantees, but AppLovin is the clear outlier on both punishment and projected recovery.

What the Numbers Say AppLovin trades at $305.77 with a consensus 12-month target of $526.39 from 32 analysts, implying roughly 72% upside. UBS’s $790 Street-high target pushes that to about 158%.

APP is down 54.62% year to date and 26.98% over the past year. The S&P 500 is up 12.29% year to date and 20.48% over the past year. The stock trades at a forward P/E of 20, unusual for a company growing revenue in the 50s%.

Bull and Bear Cases for AppLovin From Here AppLovin looks compelling if Q3 confirms model reacceleration and consumer ads keep compounding. The path back toward analyst targets requires exactly what management guided: 46% to 48% year-over-year revenue growth, a stable 83% adjusted EBITDA margin, and evidence that AppLovin Ads Manager converts mid-market advertisers into recurring spend. Hit those, and the multiple compression reverses quickly on a business still buying back stock aggressively.

The bear case strengthens if the Q2 shortfall is the front edge of a broader pattern. Model improvements are hypothesis-driven, and management admitted results swing quarter to quarter. If AXON cadence stays lumpy, if consumer creative bottlenecks slow the non-gaming rollout, or if competitors close the ROAS gap on Android, a beta of 2.53 means the drawdown can extend further. A name that swings this hard belongs in the speculative sleeve of a portfolio, sized with the kind of rules we spelled out in a free guide to speculating with 5% of your capital.

The setup looks cautiously constructive. Fundamentals still support the bull case, buybacks provide a floor, and even the consensus gap offers a real margin of safety for investors willing to sit through volatility.

Contact [email protected] for any questions or corrections.

AppLovin Corp (NASDAQ:APP) faces a mostly negative investor mood heading into the back half of the year, with few able to make a clear bullish case, according to a new Jefferies note summarizing recent investor conversations and a debate the firm hosted on the stock.

Jefferies said questions about whether AppLovin could follow a trajectory similar to The Trade Desk's downturn represent the most negative line of questioning the firm has received in its years covering the company.

Jefferies believe the two businesses don't overlap much. The Trade Desk relies more on large agencies and Fortune 100 advertisers moving budgets to rivals like Amazon DSP and Google DV360, while AppLovin is built around performance marketing tied to measurable results rather than fixed brand spending.

On the bull side, investors point to AppLovin's potential to grow its e-commerce business by expanding its sales team and building out agency partnerships, which could bring more large, sophisticated direct-to-consumer brands onto the platform. Bulls also argue that continued growth in in-app advertising works in AppLovin's favor even if the broader mobile gaming market slows, so long as the company keeps improving its ad targeting.

Bears counter that a slowing mobile games market limits how much upside is left. Third-party data pointing to declining install volumes and rising cost-per-install figures suggests some game studios are pulling back spending, they argue, which would put more weight on take-rate expansion and e-commerce growth to sustain results. Both of those areas have seen expectations soften over the past quarter.

Bears also flagged take-rate compression in the second quarter, tied to double-digit percentage growth in publisher revenue disclosures from AppLovin's MAX ad exchange. Rising competition from Unity, Meta and Liftoff is pressuring AppLovin's 35-40% take rate. Jefferies can't say how much stems from competition versus stalled improvement in AppLovin's AXON ad model.

Jefferies estimates the addressable market for mobile games, excluding China, at about $105 billion for 2026 across in-app purchases, direct-to-consumer spending and in-app advertising, up in the mid-single digits year over year.

Abacus FCF Advisors LLC acquired a new position in AppLovin Corporation (NASDAQ:APP – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 18,838 shares of the company’s stock, valued at approximately $9,706,000. AppLovin makes up 1.8% of Abacus FCF Advisors LLC’s portfolio, making the stock its 23rd largest holding.

Other hedge funds have also made changes to their positions in the company. Cassaday & Co Wealth Management LLC purchased a new stake in shares of AppLovin during the first quarter valued at approximately $25,000. Washington Trust Advisors Inc. boosted its stake in shares of AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after buying an additional 24 shares during the last quarter. Mcguire Capital Advisors Inc. acquired a new stake in shares of AppLovin during the fourth quarter worth approximately $27,000. Pioneer Family Office LLC acquired a new stake in shares of AppLovin during the second quarter worth approximately $31,000. Finally, Laurel Wealth Advisors LLC bought a new stake in shares of AppLovin in the fourth quarter worth $32,000. Hedge funds and other institutional investors own 41.85% of the company’s stock.

AppLovin News Roundup Here are the key news stories impacting AppLovin this week:

Positive Sentiment: One bullish analysis argues that AppLovin could recover in the second half of 2026 as AXON 2.0 becomes generally available through its self-service platform and the company expands e-commerce onboarding. Its potential moves into e-commerce and connected TV could substantially increase its addressable market, supporting a $537 valuation target despite weaker-than-expected second-quarter revenue and EBITDA. AppLovin: Here’s How I See 3 Catalysts That Could Drive Valuation Re-Rating Positive Sentiment: AppLovin continues to stand out for its high profitability and rapid growth, with roughly a 60% net margin and strong year-over-year revenue expansion. These fundamentals remain a potential counterweight to concerns about the stock’s premium valuation. AppLovin vs. Kratos Defense Neutral Sentiment: Compared with CoreWeave, AppLovin has recently generated lower absolute quarterly revenue and slower sequential growth, although both companies have posted consistent year-over-year increases. AppLovin vs. CoreWeave Neutral Sentiment: Comparisons with SK Hynix highlight AppLovin’s much higher valuation multiple, while SK Hynix carries greater debt and regulatory exposure. SK Hynix vs. AppLovin Negative Sentiment: Wells Fargo lowered its AppLovin price target from $357 to $325 and assigned an “equal weight” rating, signaling limited near-term upside and contributing to the stock’s decline. Wells Fargo price-target report Negative Sentiment: Benchmark issued a pessimistic forecast, while separate reports attributed additional weakness to analyst downgrades. The broader concern is that AppLovin’s premium valuation leaves little room for execution or quarterly guidance misses. Benchmark Issues Pessimistic Forecast Wall Street Analyst Weigh In Several equities research analysts have recently weighed in on APP shares. BTIG Research dropped their target price on shares of AppLovin from $574.00 to $408.00 and set a “buy” rating for the company in a research report on Wednesday, August 12th. Scotiabank reaffirmed a “sector outperform” rating and set a $515.00 price target on shares of AppLovin in a research report on Thursday, August 6th. UBS Group decreased their price target on AppLovin from $798.00 to $790.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Raymond James Financial began coverage on AppLovin in a report on Monday, June 29th. They issued a “strong-buy” rating and a $640.00 price objective for the company. Finally, Wells Fargo & Company cut their price objective on AppLovin from $357.00 to $325.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $556.43. View Our Latest Stock Report on APP

Insider Activity In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of AppLovin stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $600.00, for a total transaction of $5,431,200.00. Following the sale, the chief financial officer owned 177,450 shares of the company’s stock, valued at $106,470,000. The trade was a 4.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Victoria Valenzuela sold 20,000 shares of the business’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $565.89, for a total value of $11,317,800.00. Following the transaction, the insider owned 243,961 shares of the company’s stock, valued at $138,055,090.29. This trade represents a 7.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 393,000 shares of company stock worth $197,297,363 over the last three months. Insiders own 12.81% of the company’s stock.

AppLovin Price Performance Shares of NASDAQ:APP opened at $310.79 on Thursday. The company has a quick ratio of 4.30, a current ratio of 4.30 and a debt-to-equity ratio of 1.11. AppLovin Corporation has a fifty-two week low of $303.17 and a fifty-two week high of $745.61. The firm has a 50-day simple moving average of $434.90 and a 200 day simple moving average of $450.39. The company has a market cap of $104.01 billion, a PE ratio of 23.89, a P/E/G ratio of 0.62 and a beta of 2.54.

AppLovin (NASDAQ:APP – Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $3.76 EPS for the quarter, meeting analysts’ consensus estimates of $3.76. The company had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.94 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%.AppLovin’s quarterly revenue was up 52.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.39 earnings per share. On average, sell-side analysts anticipate that AppLovin Corporation will post 15.57 EPS for the current year.

About AppLovin (Free Report)

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

See Also Five stocks we like better than AppLovin Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding APP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for AppLovin Corporation (NASDAQ:APP – Free Report).

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AppLovin demonstrates massive profitability and growth through its AI-powered advertising platform. Kratos Defense & Security Solutions maintains a critical role in unmanned systems and satellite communications for the military.

In this video, I will cover DLocal and Nu's latest earnings reports and share my thoughts on another strong week for AI stocks, including Nebius (NBIS -7.60%) and CoreWeave. Watch the short video to learn more, consider subscribing, and click the special offer link below.

*Stock prices used were from the trading day of Aug. 18, 2026. The video was published on Aug. 18, 2026.

Neil Rozenbaum has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

New Integration Allows Golfers to Automatically Capture, Analyze, and Review Every Practice Session and Round from their Full Swing Simulator Experience Directly in the Full Swing App

Enhanced Performance Tracking Brings Driving Range Analytics, Club-by-Club Performance Trends Over Time, and Automatic Round Tracking to the App

Release Also Adds New Multiplayer Mode to Skill Strike and the Acclaimed Victory Ranch Golf Club to Full Swing's Course Lineup

, /PRNewswire/ -- Full Swing, the leader in immersive golf simulation and performance technology and a new addition to Versant's comprehensive portfolio of golf businesses, today announced a major software update that transforms how golfers interact with the Full Swing Simulator, headlined by a new integration that seamlessly connects the Full Swing App and the Simulator experience.

Dispersion

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Sim - Activity

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The connected App and Simulator experience allows players to automatically capture, analyze, and review every practice session and round directly from their smartphone, giving golfers more timely and in-depth information to help better understand and advance their game.

The release also introduces enhanced performance tracking, highlighted by Driving Range analytics, automatic round tracking, and a new multiplayer mode in Skill Strike, plus the addition of the acclaimed Victory Ranch Golf Club to Full Swing's growing course library.

"This update is all about creating one connected ecosystem," said Jason Fierro, President at Full Swing. "Whether you're practicing in our new driving range experience or playing a competitive round, every session is now automatically connected to your Full Swing account via our mobile app, giving golfers more insight into their game than ever before."

Versant Media Group, Inc. (NASDAQ: VSNT) recently announced the completion of its acquisition of Full Swing, extending Versant's leadership in golf and deepening its portfolio of digital platforms. Together with Golf Channel, GolfNow and GolfPass, Versant connects premium content, commerce, technology and participation, creating more ways to engage golfers throughout their journey.

Features of Full Swing's new release include:

Connected Full Swing App/Simulator Experience The Full Swing App is now the central hub for the Full Swing Simulator experience, with any players who are logged in to the Full Swing Launcher receiving automatic syncs with their in-app profile Game modes that are supported through the connected App/Simulator experience include Stroke Play, Scramble, and Best Ball, plus Driving Range sessions Range Sessions Sync with Easy-to-Share Analytics Every Driving Range session syncs with the App immediately after completion, giving players instant feedback including club dispersion, accuracy charts, club usage, averages, individual shot history, and aggregate session statistics Golfers can easily share these analytics with friends and coaches directly from the App Round Tracking within Activity Feed The new Activity Feed automatically features information on every completed round, including gameplay course information, tee selection, game format, complete scorecard, driving distance, GIR, putting statistics, scrambling percentage, and round history Digital Golf Bags Within the Full Swing App, golfers can now build a personalized digital golf bag – complete with their exact clubs, custom names, and color preferences – which will automatically launch within every Driving Range session Skill Strike Rotation Play Full Swing's popular Skill Strike game now features Rotation Play allowing golfers to enjoy the game mode with friends In Rotation Play, golfers take three shots before the game automatically rotates to the next golfer, keeping the whole group engaged Victory Ranch Golf Club Full Swing has added the highly rated Victory Ranch Golf Club, designed by the acclaimed Rees Jones, to its game play options Victory Ranch, which stretches over 7,600 yards through Utah's mountains in Heber City, has been recognized in Golf Digest's Best Courses in Every State and as Utah's Best Private Course by Golfweek. Additional User Enhancements The new release also features improved shot tracer controls with up to 10 recent tracer shots per club, manual club enablement, clear-all warm-up shots, guided onboarding, and a new, simplified way to switch between KIT and Simulator The new update is available now for compatible Full Swing Simulators. Users can simply log into the Full Swing Launcher to begin instantly syncing with the Full Swing App.

Golfers who already own a Full Swing KIT can use their existing Full Swing account. New users can quickly create an account through the Full Swing App and connect to any compatible simulator by scanning the Launcher's QR code.

ABOUT FULL SWING
Full Swing is the industry leader in pioneering sports technology. Its lineup of trailblazing golf and baseball products entertains users around the world while helping them to practice with purpose. As the Official Licensed Simulator of the PGA TOUR and an Official Technology Partner of TGL presented by SoFi, Full Swing simulators bring unmatched real-ball-flight data to golf and immersive multi-sport experiences. The company's KIT Launch Monitor, tested and trusted by Tiger Woods, is an indoor and outdoor practice solution that uniquely combines 16 points of club and ball data with high-resolution video. This groundbreaking technology has now been extended to baseball, so KIT can calculate both pre- and post-impact data performance insights like Squared Up Rate and Potential Exit Velocity. Full Swing's impressive roster of champions is highlighted by PGA TOUR stars like Tiger Woods, Jordan Spieth, Jon Rahm, Xander Schauffele, and Dustin Johnson, as well as Patrick Mahomes, Josh Allen and Steph Curry

About Versant Media Group, Inc.

Versant Media Group, Inc. (NASDAQ: VSNT) is an industry-changing media and entertainment business and home to trusted brands that shape culture, inform audiences, and build lasting connections. It operates in four core markets: political news and opinion; business news and personal finance; golf; and sports and genre entertainment. These markets are served through a powerful portfolio of iconic and innovative brands, including MS NOW, CNBC, USA Network, Golf Channel, E!, SYFY and Oxygen, and complementary digital platforms Fandango, Rotten Tomatoes, GolfNow and GolfPass. Visit www.versantmedia.com for more information.

SOURCE Full Swing Simulators

Palantir Technologies (PLTR -2.78%) CEO Alex Karp is fond of highlighting the company's Rule of 40 score. The Rule of 40 states that a healthy software company's year-over-year revenue growth percentage plus its operating margin must exceed 40. Palantir blew that benchmark away last quarter, producing a Rule of 40 score of 155.

Another software company is quietly producing a triple-digit Rule of 40 score as well. But while the market is rewarding Palantir with earnings and sales multiples far in excess of those of practically any other company of its size, the valuation for this other fast-growing software stock is much more tame. In fact, its forward price-to-earnings (P/E) sits below 19, less than the overall S&P 500's.

Here's why AppLovin (APP +0.89%) deserves a closer look.

Image source: Getty Images.

Can this software stock keep its triple-digit Rule of 40 score? AppLovin is an adtech company that sets itself apart by charging advertisers only when ads convert. The catch is, advertisers have to turn over practically everything about ad placement and pricing to AppLovin's black box model. The company's Axon 2 models have driven a sharp acceleration in revenue over the last few years, as it has also expanded AppLovin's market beyond its original gaming niche.

Management has seen excellent progress in non-gaming revenue growth, and it launched a self-service platform in June, which should help accelerate onboarding and total revenue growth. Total non-gaming-related revenue in the second quarter exceeded the seasonally strong fourth quarter by 28%. However, weakness in gaming advertising, which still accounts for the vast majority of its revenue, led to a disappointing overall result -- total revenue grew 53% year over year last quarter, down from the 59% growth it posted in the first quarter.

The weakness stems from the timing of the latest upgrade in the Axon 2 models. At the same time, the company spent more on compute to train its models and on research and development to improve them further. Management says the model update is now live, the third quarter is off to a strong start, and the business is back on the trajectory it expects. With its strength in gaming and the expansive market beyond gaming, management sees the potential for long-term compound annual revenue growth of 30%.

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What's more, the business's margin profile is incredible. Despite increased spending to improve the Axon 2 models, the company posted an operating margin of 78% last quarter. That makes its Rule of 40 score 131 for the quarter. Over the long run, sales and marketing may come down as a percentage of revenue due to the growing self-service platform and the scale of operations. However, management is likely to funnel more money into research and development to ensure Axon 2 maintains its advantage over the competition.

CFO Matt Stumpf noted that the company doesn't manage for margin, but focuses on EBITDA and free cash flow growth. If it can invest a dollar in improving its artificial intelligence models and get more than a dollar back in cash returns, it'll do it. That said, Stumpf expects the EBITDA margin to remain in the low-80% range over the long term. So, combined with 30% long-term revenue growth, AppLovin should maintain a triple-digit Rule of 40 score for the foreseeable future.

Why is the market paying so much more for Palantir stock? Palantir shares trade for more than 100 times estimated earnings over the next year and more than 50 times estimated sales. That's an exceptional premium, suggesting the company's growth runway is massive.

In comparison, AppLovin's earnings and sales multiples of 19 and 13, respectively, suggest investors don't expect earnings growth to remain elevated over the long run.

To be sure, Palantir has a tremendous opportunity. Its total addressable market could expand from $335 billion this year to $1.4 trillion by 2033, according to select analyst estimates. Palantir could merely maintain its market penetration rate and grow revenue at a compound rate of 23%. Doubling its market penetration, well within reason, would double that average growth rate.

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That said, the digital advertising market is expected to grow relatively quickly as well. Global spending could reach $662 billion this year and $1.7 trillion by 2033, according to Grand View Research. That's a compound annual growth rate of 14.3%, which supports AppLovin's estimate of 30% long-term growth as it takes share of the large non-gaming ad market.

But while Palantir faces few limitations to its growth, AppLovin's black-box ad platform will struggle to deliver exceptional results for advertisers if it saturates the market. More advertisers using the same algorithm makes it less effective. That sets an upper limit on AppLovin's market penetration.

Still, at just 19 times forward earnings, the stock looks underpriced relative to its potential, even with that limitation. The company should be able to deliver strong revenue growth at very high margins for years to come, and the market is heavily discounting that right now.

Walled gardens command the lion's share of advertising spending, with it leaving smaller players in the dust, APP included. These headwinds are albeit well balanced by the still robust FQ2'26 metrics and promising FQ3'26 guidance, no matter the notable growth deceleration. APP's meltdown and rich profit margins has triggered a deep value Buy opportunity at EV/EBITDA of 14.95x while offering an excellent upside potential to my LTPT of $485.60.

The firm established a December 2027 price forecast of $400, based on about 18 times its 2028 GAAP earnings estimate of $22.42 per share. AppLovin closed Thursday at $312.67, implying about 28% upside from that level.

AppLovin Gaming Growth Faces Durability QuestionsJPMorgan called AppLovin a leading advertising technology platform for mobile gaming marketers. The company is targeting roughly 30% annual revenue growth over the longer term and adjusted EBITDA margins in the low-80% range.

However, the firm said investors are increasingly questioning how long AppLovin can sustain its rapid gaming growth. The company’s second-quarter revenue fell below the midpoint of its guidance.

Its third-quarter revenue outlook of $2.055 billion to $2.085 billion, representing 46% to 48% year-over-year growth, also fell short of investor expectations, according to JPMorgan’s conversations.

JPMorgan estimates AppLovin’s MAX mediation platform holds more than 70% of the mobile gaming mediation market. Its AppLovin Ads demand-side platform has more than 40% share.

Consumer Advertising Could Drive Next Growth PhaseAppLovin’s expansion beyond gaming could become an important growth engine. The company opened its advertising platform to all advertisers in June.

JPMorgan estimates the consumer business accounted for about 9% of second-quarter gross spend. Consumer spending increased 28% from fourth-quarter 2025 levels.

The firm forecasts consumer net revenue of $777 million in 2026, up 63% year over year, before climbing 75% to $1.4 billion in 2027. Consumer advertising would account for about 14% of total net revenue by 2027 under those estimates.

The opportunity is sizable. JPMorgan estimates the U.S. online advertising market exceeds $335 billion, with retail and consumer packaged goods representing about $140 billion, or 42%, of spending.

Still, JPMorgan said AppLovin must prove it can scale advertiser density, improve its models and demonstrate returns for consumer advertisers in a highly competitive market.

Margins Remain A StandoutDespite those execution risks, JPMorgan remains positive on AppLovin’s market position, reach across more than 1 billion daily active users and ability to improve advertiser returns.

The firm forecasts net advertising revenue of $8.1 billion in 2026, up 48% year over year, with an adjusted EBITDA margin of 84%.

JPMorgan also projects $5.2 billion in 2026 free cash flow, representing about 76% conversion from adjusted EBITDA. AppLovin has about $1.8 billion authorized for share repurchases.

For now, JPMorgan said it wants to see more consistent returns from AppLovin’s gaming model improvements and further evidence that the consumer advertising business can scale meaningfully.

AppLovin Price ActionAPP Price Action: AppLovin shares were up 2.30% at $319.84 at the time of publication on Friday, according to Benzinga Pro data.

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Investors face a choice between hardware and software dominance as Advanced Micro Devices (AMD +1.81%) and AppLovin (APP -4.68%) compete for capital in an increasingly artificial intelligence-driven market landscape.

Advanced Micro Devices provides the physical chips and infrastructure required to power modern data centers. Meanwhile, AppLovin builds the software and recommendation engines that monetize the digital world, creating a classic comparison between semiconductors and specialized software.

Advanced Micro Devices designs and sells a broad range of high-performance and adaptive computing products, including processors and AI accelerators. Its strategy focuses on capturing market share in semiconductor stocks by serving data centers, gaming consoles, and personal computer markets. Major customers include Microsoft and Sony for semi-custom products, and the company has recently partnered with OpenAI and Core Scientific. Customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached nearly $34.6 billion, representing a significant increase from the $25.8 billion reported in the prior year. This growth helped drive net income to approximately $4.3 billion, which is a substantial jump from $1.6 billion in 2024. The net margin, which is the percentage of revenue remaining as profit after all expenses, improved to roughly 12.5% during this period.

As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.1x. This ratio measures total debt against shareholder equity, and a low figure suggests the company relies more on its own assets than borrowed money. The current ratio, which evaluates the ability to pay short-term obligations with short-term assets, is nearly 2.9x. Free cash flow was approximately $6.7 billion in FY 2025. Note that stock-based compensation represented roughly 21.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

The case for AppLovinAppLovin provides advertising software and consumer-app products that help businesses monetize digital content through mobile advertising. The company operates two primary segments, Advertising and Apps, using its Axon AI engine to optimize ad placements for developers and brands. Its customer base is largely composed of advertisers and publishers within the mobile gaming and e-commerce sectors. The business recently expanded its reach through the acquisition of Wurl to service streaming content companies.

In FY 2025, revenue reached approximately $5.5 billion, marking a 70.0% increase compared to the previous fiscal year. This rapid growth was accompanied by a net income of nearly $3.3 billion, up from $1.6 billion in 2024. The net margin is impressively high at roughly 60.8%, which indicates that the company retains a large portion of its revenue as profit.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 1.7x. The current ratio is nearly 3.3x, showing a strong ability to cover short-term liabilities with liquid assets. Free cash flow for FY 2025 was approximately $3.9 billion. Since stock-based compensation accounted for only 5.3% of operating cash flow, the company provides a relatively clean view of its cash generation without heavy inflation from non-cash pay.

Risk profile comparisonAdvanced Micro Devices faces intense competitive threats from established rivals like Nvidia and Intel, who use aggressive pricing and deep software ecosystems to protect their territory. U.S. government export controls on advanced chips to China also pose operational risks, potentially leading to lost revenue or inventory charges. Additionally, the company is heavily dependent on third-party foundries like TSMC. Any disruption at these facilities could materially harm its ability to deliver products to customers.

AppLovin deals with significant revenue concentration within the mobile app ecosystem, leaving it vulnerable to policy changes from Apple, Alphabet, or Meta Platforms. Cybersecurity and data privacy are also critical concerns, as failure to comply with evolving regulations like GDPR can result in heavy legal liabilities. Furthermore, the company must successfully integrate frequent strategic acquisitions and continuously evolve its AI recommendation engine to avoid losing market share to better-resourced competitors.

Valuation comparisonAppLovin currently trades at a significantly lower earnings multiple than Advanced Micro Devices.

MetricAdvanced Micro DevicesAppLovinForward P/E42.7x17.3xP/S ratio19.3x15.1xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?I'd go with AMD. Applovin's AI-powered advertising platform is one of the more profitable software businesses being built right now, with margins that most companies in the space would envy. But the Q2 revenue miss and guidance disappointment introduced uncertainty at a moment when the stock was already under pressure, and that combination is difficult for me to look past.

AMD is putting up numbers that would have seemed improbable just two years ago. Its sixth consecutive quarter of growth above 30%, data center sales more than doubling year over year, and a newly announced partnership with Anthropic to deploy a massive GPU cluster all point to a company that is cementing its position as the primary alternative to Nvidia in the AI chip market. CEO Lisa Su signaled that data center sales are expected to double again in 2027, which is not something you hear from many companies at this scale.

The gaming business is a headwind worth acknowledging, and AMD's valuation is not modest. But for a long-term investor who wants direct exposure to the AI infrastructure build-out from a company with the momentum and the partnerships to back it up, AMD is the stronger pick right now.

Sara Appino has positions in Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Key Takeaways AppLovin's Q3 revenue midpoint of $2.07B implies 7.8% sequential growth, up from roughly 4% in Q2.AppLovin expects Q3 adjusted EBITDA of $1.71B-$1.74B, with its margin holding near 83%.AppLovin's outlook uses AI model enhancements already deployed while computing investments continue. AppLovin Corporation (APP - Free Report) paired a modest second-quarter revenue miss with third-quarter guidance that points to faster sequential expansion. Revenues still increased sharply year over year, but the sequential pace slowed from the first quarter.

The next test is whether that guidance translates into renewed momentum while AppLovin continues spending on computing capacity for existing and new artificial-intelligence models. The outlook suggests growth can accelerate without a major reset in profitability.

APP’s Q3 Revenue Guide Implies ReaccelerationAppLovin expects third-quarter revenues of $2.055 billion to $2.085 billion. The $2.07 billion midpoint implies about 7.8% sequential growth from second-quarter revenues of $1.92 billion, a clear step up from the roughly 4% sequential increase recorded in the second quarter.

That matters after second-quarter revenues rose 52.8% year over year but missed the Zacks Consensus Estimate by 0.75%. The Trade Desk, Inc. (TTD - Free Report) , which operates a self-service advertising platform for buyers, offers a useful industry reference as investors assess whether AI-driven advertising platforms can sustain growth while improving campaign decisioning.

AppLovin Expects EBITDA to Keep PaceAdjusted EBITDA is projected between $1.71 billion and $1.74 billion for the third quarter. At the $1.725 billion midpoint, adjusted EBITDA would rise about 7.1% sequentially from $1.61 billion in the second quarter.

That pace would keep profitability broadly aligned with the expected revenue acceleration. AppLovin’s second-quarter adjusted EBITDA increased 58% year over year, faster than revenue growth, underscoring the operating leverage already present in the model.

APP’s Margin Outlook Absorbs Higher AI SpendingManagement expects an adjusted EBITDA margin of about 83% in the third quarter, compared with approximately 83.9% in the second quarter. The projected decline is modest given the company’s continued investment in computing capacity for current and new AI models.

Research and development expenses reached $99.9 million in the second quarter, up from $44 million a year earlier. Unity Software Inc. (U - Free Report) , which also operates advertising technology tied to gaming and broader digital channels, provides another relevant comparison as advertising platforms invest in data, automation and campaign performance tools.

AppLovin’s Guidance Uses Models Already in ProductionThe third-quarter outlook incorporates model enhancements that have already been deployed. It does not depend on additional releases that have yet to reach production, which gives investors a more concrete basis for evaluating the projected acceleration.

That distinction reduces the degree to which the quarter depends on untested product launches. Execution still matters, but the revenue and EBITDA targets are tied to technology already operating in AppLovin’s marketplace rather than future model breakthroughs.

APP’s Growth Score Supports the Guidance StoryThe guidance sets up a straightforward operating test. Faster sequential revenue and adjusted EBITDA growth, combined with an expected margin near 83%, would show that AppLovin can absorb heavier AI investment while maintaining substantial profitability.

APP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AppLovin has a Growth Score of A, VGM Score of B, Value Score of C and Momentum Score of D. The Growth Score supports the company’s favorable growth characteristics, while the weaker Momentum Score suggests less supportive near-term price trends.

The Zacks Rank #3 indicates a more neutral short-term earnings-estimate backdrop. Taken together, the ratings leave third-quarter execution as an important proof point rather than a settled conclusion about the stock’s near-term direction.

AppLovin Corp (NASDAQ:APP) shares fell 5% to $321 after Bank of America downgraded the stock to Neutral, citing greater uncertainty around the company’s ability to sustain its long-term 30% revenue growth trajectory.

Bank of America said AppLovin’s second quarter results raised questions about a previously assumed source of baseline sequential growth. The firm said engineer-directed improvements to the company’s gaming models appeared to be the primary driver of quarterly growth, while it was less clear whether the 3% to 5% sequential growth from self-learning remained applicable.

The firm said the future trajectory of self-learning was not explicitly addressed in AppLovin’s recent earnings report or third-quarter guidance. Given what it estimates is AppLovin’s roughly two-times market share relative to its next-largest competitor, Bank of America said 3% sequential growth from self-learning alone may no longer apply over the long term.

Bank of America also said AppLovin’s next wave of innovation requires more evidence before it can support the company’s 30% long-term annual revenue growth target. Management has outlined plans to train larger and more complex recommender system models, which it believes could generate larger gains over time by benefiting from scaling effects similar to those seen in large language models.

While Bank of America described AppLovin as a technology leader that has out-innovated Google and Meta in the in-app bidding market, it said there was not yet enough evidence to assess the magnitude or durability of potential gains from the larger recommender models.

As a result, Bank of America lowered its 2027 revenue growth forecast to 23% from 31% and reduced its 2027 EBITDA estimate to $8.3 billion from $9 billion.

The firm also lowered its third quarter model to the midpoint of AppLovin’s guidance range from the high end and reduced its 2027 Consumer revenue forecast to $2 billion from $2.3 billion.

Bank of America lowered its price objective to $400 from $430, based on a 16-times multiple of estimated 2027 EBITDA. It kept the valuation multiple unchanged, saying it expects limited downside to its estimates and does not anticipate AppLovin losing significant market share.

The firm said the debate around AppLovin is increasingly likely to center on the company’s maturity. Without another innovation cycle, Bank of America said AppLovin could increasingly be viewed as a mature adtech platform, with its valuation moving closer to that of established, scaled online advertising companies.

Adtech company AppLovin (APP -5.99%) had a Tuesday it would probably rather forget, at least as far as its stock is concerned. The fallout from its disappointing second-quarter earnings report, published last week, continued. This was exacerbated by an analyst's recommendation downgrade. AppLovin's shares fell by almost 6% that trading session.

A new neutral stance The pundit behind that move was Omar Dessouky of Bank of America Securities. Well before market open, he changed his rating on AppLovin from buy to neutral. This was accompanied by a reduction in the stock's price target to $400 per share from $430.

Image source: Getty Images.

According to reports, Dessouky expressed concern that the company won't be able to post the 30% year-over-year revenue growth it has targeted over the long term. In his view, recent improvements to the finances appeared to be due mostly to engineer-directed enhancements to AppLovin's gaming models.

The analyst also cast some doubt on the longevity of efficiency gains from the company's artificial intelligence (AI)-powered self-learning analytical capabilities.

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Has it landed in the bargain basement? While I understand these concerns, I should point out that AppLovin is still growing at impressive double-digit rates. Growth might be slowing, but not to the point where investors should impulsively throw in the towel. The recent weakness in the stock, then, is starting to look like an attractive buy-at-a-discount opportunity for this still high-potential company.

Bank of America is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

AppLovin Corp. (NASDAQ:APP) shares are falling Tuesday after BofA Securities downgraded the stock from Buy to Neutral and cut its price target to $400 from $430.

AppLovin shares are approaching critical lows. Why is APP stock at lows? AppLovin Stock Drops On BofA DowngradeAppLovin shares dropped after BofA analyst Omar Dessouky downgraded the stock, citing increased risk to the company’s long-term growth targets. Dessouky said the risks to AppLovin’s 30% year-over-year long-term revenue growth trajectory, which includes the Consumer segment, have increased.

Dessouky reduced the price target on AppLovin to $400 from $430, a cut of 6.98%. The new target still represents 17.99% upside from AppLovin’s current price of $339.

BofA’s Omar Dessouky Flags Risk To AppLovin’s Growth DriversDessouky said engineer-directed improvements to AppLovin’s gaming models drove most of the company’s quarter-over-quarter growth after its second-quarter results. Dessouky expressed AppLovin did not explicitly address the future trajectory of its self-learning growth rate during the recent earnings print, in its third-quarter guidance or in any commentary since.

AppLovin’s Market Share Lead Raises Long-Term Growth ConcernsDessouky estimated AppLovin’s relative market share at twice that of its next-largest competitor. He said this high market share position means AppLovin’s 3% to 5% quarter-over-quarter self-learning growth rate may no longer apply on its own.

Dessouky said most of the market had assumed self-learning growth was a given. He said AppLovin achieves that growth by continuously retraining its predictive models on live impression data. Dessouky stated this retraining continued in the second quarter even though engineer-directed improvements were lighter than normal.

APP Shares Are DroppingAPP Price Action: Applovin shares were down 5.53% at $320.25 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro.

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AppLovin is facing a moment of reckoning as execution risks rise quickly and growth hits a speed bump, despite having endured a sharp valuation reset. APP's transition into the consumer/e-commerce vertical faces greater challenges than anticipated, with AI model sophistication and data quality being key hurdles. Core mobile gaming remains resilient, but market share has likely peaked, and revenue growth is expected to decelerate through FY2028.

© robertcicchetti / Getty Images

Pre-Market Stock Futures: Futures are trading modestly higher after there was no encore follow-through on Monday, following a record-breaking week on Wall Street that saw two of the major indices hit all-time highs. Risk-off was the word to start the week off as all of the major indices finished in the red on Monday. The losses were modest on Monday, with the Nasdaq closing down 0.32% at 26,605, and the small-cap Russell 2000 down 0.56% at 3,017. The Dow Jones Industrials finished lower by 0.11% at 53,975, while the S&P 500 fared best, closing just 0.06% lower at 7,753. One thing is for sure: traders and investors alike are nervously waiting for the consumer price index report on Wednesday and the producer price index the following day. Many are worried that the benign June inflation report, released in early July, will not be repeated when the July report is released. Should inflation spike back to May levels or worse, that could very well lock in a Federal Reserve rate hike of 25 basis points (1.4% of 1%) in September.

Treasury Bonds: The same concerns that kept a lid on stocks also drifted into the bond market, as yields rose across the entire Treasury curve, with most of the damage in the belly and the long end. Inflation worries, rising oil prices, and the ongoing situation in the Middle East involving Iran all conspired to bring sellers out. The 30-year long bond closed the day at 5.25%,  while the benchmark 10-year note finsihed the day at 4.71%. 

Oil and Gas: Prices soared once again in the energy complex as the Strait of Hormuz bottleneck persisted, with traders citing growing doubts about a diplomatic settlement. Bank of America noted during the day that 10 times more ships need passage to stabilize oil markets. When the final bell rang, Brent Crude closed at $87.85, up 5.15%, while West Texas Intermediate was last seen at $82.30, up 5.27%. Natural gas also had a big day, closing at $2.78, up 4.36%.

Gold: After finishing its best week in 7 months,  Gold kept the streak going with a solid performance on Monday. Traders cited the lousy jobs data from Friday, ongoing central bank purchases, and inflation, all of which provided a stiff tailwind for precious metals. Gold closed the session at $4,388, up 1.10%, while Silver closed at $65.85, up 3.37%.

Crypto: Bitcoin and other top cryptocurrencies pushed past $65,000 earlier in the session, putting them on track for a positive week. That momentum faded somewhat as U.S. afternoon trading progressed, with Bitcoin slipping back to the $63,800–$64,000 range. Traders were cautious ahead of the U.S. inflation report Wednesday, while also weighing news that the Senate had postponed a vote on legislation to regulate digital asset markets. At 8 AM EDT, Bitcoin traded at $64,225, while Ethereum traded at $1,890.

24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Tuesday, August 11. 2026.  

Upgrades: Abercrombie & Fitch (NYSE: ANF | ANF Price Prediction) was upgraded to Equal Weight from Underweight at Barclays, which raised the price target for the retailer to $114 from $78. Best Buy (NYSE: BBY) was raised to Buy from Hold at Truist Financial, with a $95 target price for the stock. Boeing Company (NYSE: BA) was raised to Buy from Hold at Argus Jabil (NYSE: JBL) was upgraded to Buy from Neutral at UBS, with a $430 target price. Spotify Technology (NYSE: SPOT) was upgraded to Buy from Neutral at Phillip Securities, with a $650 target price. Downgrades: Airbnb (NASDAQ: ABNB) was downgraded to Reduce from Neutral at Phillip Securities, with a $158 target price. Allstate (NYSE: ALL) was downgraded to Sell from Neutral at Citigroup, which bumped the price target for the insurance giant to $240 from $226. AppLovin Corporation (NASDAQ: APP) was downgraded to Neutral from Buy at Bank of America, which cut the price target to $400 from $430. The Gap (NYSE: GAP) was cut to Equal Weight from Overweight at Barclays, which trimmed the price target for the stock to $20 from $26. Under Armour (NYSE: UAA) was downgraded to Underweight from Equal Weight by Barclays, with an unchanged $5 target price. Initiations: Arista Networks (NYSE: ANET) was reinstated with a Buy rating at William O’Neil, without a target price. Autodesk (NASDAQ: ADSK) was initiated with a Neutral rating at Goldman Sachs, with a $260 target price. BigBear.ai (NASDAQ: BBAI) was initiated with a Buy rating at Tiger Partners, with a $5 target price. Fiserv (NASDAQ: FISV) was resumed with an Equal Weight rating at Stephens, with a $57 target price. Jack Henry & Associates (NASDAQ: JKHY) was resumed with an Overweight rating at Stephens, which has a $200 target price objective for the stock. 

Contact [email protected] for any questions or corrections.

Key Takeaways AppLovin fell 17% after Q2 as revenues missed estimates despite a modest earnings beat.APP sees Q3 revenue growth accelerating to about 7.8% sequentially, with EBITDA margin near 83%.AppLovin's consumer ad spending hit a record, but model timing and onboarding remain key execution risks. AppLovin (APP - Free Report) reported second-quarter 2026 results on Aug. 5, and a few trading sessions have provided a clearer view of how investors are digesting the report. The stock has declined roughly 17% since the earnings release, suggesting that the market has focused less on the modest earnings beat and more on the revenue shortfall, uneven model-improvement cadence and questions surrounding the pace of consumer-advertiser scaling.

                                                            Image Source: Zacks Investment Research

That reaction is notable because the underlying growth profile remained strong. Moreover, third-quarter guidance points to sequential reacceleration, supported by model improvements deployed after the June quarter ended. The investment debate, therefore, centers on whether the recent weakness represents an attractive entry point or appropriately reflects execution risks that have become more visible.

APP's Q2 Earnings Beat Estimates, Revenues MissAppLovin reported adjusted earnings of $3.76 per share, surpassing the Zacks Consensus Estimate of $3.72 by 1.08%. Earnings increased 66.4% from $2.26 per share in the year-ago quarter.

The company has now exceeded consensus EPS estimates in each of the past four quarters. However, the magnitude of the latest beat narrowed from the preceding quarter, when earnings of $3.56 per share topped expectations by 4.71%. On a sequential basis, second-quarter EPS increased 5.6%.

Revenues reached $1.92 billion, up approximately 52.4% from $1.26 billion a year earlier. The top line nevertheless missed the Zacks Consensus Estimate by 0.75%. Revenues increased about 4% sequentially, implying first-quarter revenues of roughly $1.85 billion.

                                                                                             Image Source: APP

The combination of rapid year-over-year expansion and a sequential slowdown in incremental growth helps explain the mixed interpretation of the quarter. AppLovin continues to expand at an exceptional rate for its scale, but elevated expectations leave relatively little room for execution delays.

EBITDA Growth and Margin Remain Major StrengthsAdjusted EBITDA climbed 58% year over year to $1.61 billion, implying approximately $1.02 billion in the prior-year quarter. EBITDA growth therefore exceeded revenue growth by roughly six percentage points.

More importantly, adjusted EBITDA represented approximately 83.9% of second-quarter revenues. That is an exceptionally high profitability level and demonstrates the operating leverage embedded in AppLovin's technology-driven advertising platform.

The quarter also generated $863 million of free cash flow, equivalent to roughly 44.9% of revenues and about 53.6% of adjusted EBITDA. Cash generation was softer than the company's recent earnings profile might suggest, but the weakness primarily reflected timing rather than a deterioration in underlying economics.

Costs increased sequentially as AppLovin directed additional resources toward computing capacity for existing and new artificial-intelligence models. This is worth watching because model training and inference requirements could create some quarter-to-quarter margin variability even if the investments ultimately support higher revenues.

Why Did APP Stock Fall After Earnings?The 17% post-earnings decline appears more closely connected to execution expectations than to current profitability.

Second-quarter revenues came in slightly below consensus, while the company indicated that meaningful improvements to its gaming models arrived later than expected. Since APP's valuation is closely tied to sustained advertising efficiency and rapid model advancement, even a timing-related interruption can prompt investors to reassess near-term growth assumptions.

There was also a mismatch between current-quarter expectations and the timing of product improvements. The next meaningful performance enhancement became available shortly after quarter-end rather than contributing materially during the second quarter.

At the same time, the report did not indicate a broad deterioration in advertiser demand or competitive positioning. Consumer advertiser spending reached a new record and stood 28% above fourth-quarter 2025 levels. The challenge is that this business has not yet reached sufficient scale to fully offset periods when gaming-model improvements arrive more slowly.

That distinction matters. A demand-driven slowdown would represent a more fundamental concern, whereas delayed model improvements are primarily an execution and timing risk. The sharp share-price reaction suggests investors are demanding evidence that the latter explanation translates into stronger subsequent results.

Q3 Guidance Points to ReaccelerationThird-quarter guidance provides one of the strongest counterarguments to the post-earnings pessimism.

AppLovin expects revenues between $2.055 billion and $2.085 billion. The $2.07 billion midpoint implies approximately 7.8% sequential growth from the second quarter’s $1.92 billion, representing a meaningful acceleration from the second quarter's roughly 4% sequential increase.

Adjusted EBITDA is projected between $1.71 billion and $1.74 billion. At the $1.725 billion midpoint, EBITDA would increase approximately 7.1% sequentially from $1.61 billion.

The company expects an adjusted EBITDA margin of approximately 83% in the third quarter. That would be modestly below the second quarter's roughly 83.9%, reflecting, in part, higher AI-related infrastructure spending. Still, sustaining a margin above 80% while investing aggressively in model development would underline the strength of APP's operating model.

Importantly, the outlook incorporates model enhancements already deployed and does not depend on additional releases that have yet to reach production. That makes the guidance somewhat more tangible than an outlook dependent on future technological breakthroughs.

Balance Sheet Supports Continued Capital ReturnsAppLovin ended the quarter with $3.05 billion in cash and $3.7 billion of total debt. The resulting $650 million gap between debt and cash is modest relative to the company's EBITDA generation, with net leverage standing at approximately 0.1 times trailing adjusted EBITDA.

During the quarter, the company repurchased or withheld approximately 1.14 million shares for $551 million. Repurchase activity moderated compared with the first quarter as management balanced capital returns against temporarily softer free cash flow.

The combination of strong profitability, substantial cash holdings and minimal net leverage gives AppLovin flexibility to fund AI infrastructure, pursue product expansion and continue returning capital without placing meaningful stress on the balance sheet.

Consumer Expansion Offers Upside, but Bottlenecks RemainThe consumer opportunity remains one of the biggest variables in APP's longer-term growth story. Advertiser spending continues to expand, but onboarding is being approached gradually, with emphasis on mid-market customers that currently fit the platform's capabilities particularly well.

Creative production remains a meaningful bottleneck. Generating consistently high-quality longer-form video advertisements is still developing, which can limit how quickly smaller advertisers are able to scale campaigns.

Other opportunities, including lead generation and connected television, remain earlier in development. These initiatives provide potential extensions to AppLovin's addressable market, but investors should avoid assigning full value to them before the company demonstrates repeatable execution.

How APP Stacks Up Against Two Relevant PeersThe Trade Desk (TTD - Free Report) and Unity Software (U - Free Report) offer useful reference points for investors assessing APP's position within digital advertising and app technology.

The Trade Desk competes for digital advertising budgets through a technology-led platform, making advertising demand, customer spending and platform efficiency important metrics for both The Trade Desk and AppLovin. However, APP's unusually high adjusted EBITDA margin distinguishes its current earnings profile.

Unity Software provides another relevant comparison because of its exposure to the mobile-app and gaming ecosystem. The company has also been navigating the intersection of software, monetization and advertising technology. While Unity Software and APP differ substantially in their business mix, their exposure to developer and mobile ecosystems makes execution around product innovation important for both.

For investors comparing growth-oriented technology names, The Trade Desk and Unity Software help frame APP's opportunity, but AppLovin's combination of rapid revenue growth, very high EBITDA margins and expanding consumer advertising exposure gives it a distinctive financial profile.

Risks Remain Concentrated Around ExecutionThe biggest near-term issue is the unpredictability of model improvements. AI-driven advertising performance does not necessarily advance smoothly every quarter, creating the possibility that periods of extraordinary growth alternate with quarters of more modest gains.

Higher compute requirements add another layer of uncertainty. Third-quarter guidance already incorporates increased training and inference expenses, and continued investment could constrain incremental margin expansion.

Consumer onboarding also needs to broaden beyond a relatively concentrated group of larger contributors. Partnerships could improve advertiser acquisition, but creative tools and data integration must mature before APP can efficiently capture a much larger long-tail opportunity.

Those risks are particularly important because the market's expectations for AppLovin remain elevated. Strong absolute growth may not always be enough if reported results fall short of the trajectory embedded in investor expectations.

APP Stock After Earnings: HoldAppLovin remains an unusually profitable growth company with powerful advertising technology, expanding consumer opportunities and a balance sheet capable of supporting continued investment. The post-earnings selloff improves the risk-reward profile, while management’s outlook suggests the recent slowdown may prove temporary. However, the quarter also exposed greater variability in model-driven growth, rising infrastructure requirements and unresolved onboarding constraints. Investors should therefore resist treating the pullback alone as sufficient reason to become more aggressive. Evidence of sustained reacceleration and broader consumer adoption would strengthen the investment case. Until that confirmation emerges, existing shareholders should retain APP, making the stock a Hold.

APP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AppLovin delivered 53% YoY Q2 revenue growth with 75%+ margins, underscoring a rare blend of scale, profitability, and growth. Q2's sequential growth slowdown reflects timing of machine-learning model improvements, not structural weakness; volatility is expected, but the long-term thesis remains intact. APP's expansion beyond gaming—into consumer brands, non-gaming apps, web, and CTV—presents a TAM multiples larger than its current revenue base.