BofA update shows where active managers are putting money
Investing.com - Benchmark maintained its Buy rating and $525.00 price target on AppLovin Corp (NASDAQ:APP) following the company’s second-quarter 2025 financial results. The stock has delivered an impressive 481% return over the past year, with a market capitalization now reaching $151 billion. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
AppLovin reported revenue of $1.259 billion for Q2 2025, exceeding consensus estimates of $1.219 billion. The company’s adjusted EBITDA reached $1.018 billion, surpassing analyst expectations of $996 million.
The advertising technology company achieved a record-high adjusted EBITDA margin of 81% during the quarter, demonstrating significant profitability improvements.
Benchmark emphasized that both the Q2 results and Q3 guidance provided by AppLovin include only the advertising business, as the company has divested its apps segment.
The research firm clarified that any interpretation suggesting AppLovin missed consensus estimates due to comparisons that include the now-divested apps business would be inaccurate.
In other recent news, AppLovin Corp reported impressive second-quarter earnings, showcasing a 77% year-over-year revenue growth and a 95% increase in adjusted EBITDA. This performance exceeded market expectations, with revenue growth accelerating by 600 basis points and adjusted EBITDA surpassing consensus estimates by 300 basis points. Piper Sandler responded to these results by raising its price target for AppLovin to $500, maintaining an Overweight rating, and noting a "solid beat" on earnings. JPMorgan also increased its price target to $425, citing the company’s sequential revenue growth of 9% in the second quarter, which exceeded its guidance. Additionally, Loop Capital reiterated its Buy rating with a $650 price target, while UBS maintained its Buy rating and increased its fiscal year 2026 EBITDA estimate to $6.18 billion, above the Street consensus. BTIG raised its price target to $547, highlighting the launch and expansion of AppLovin’s self-serve ad product, "Axon Ads Manager," as a significant development. These recent developments reflect positive sentiment from analysts, with several firms adjusting their targets and ratings based on AppLovin’s strong performance and strategic initiatives.
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