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Investing.com - BTIG has lowered its price target on AppLovin Corp (NASDAQ:APP) to $664.00 from $693.00 while maintaining a Buy rating on the stock. The mobile technology company, which boasts a market capitalization of nearly $210 billion and impressive gross profit margins of 78.6%, is scheduled to report its Q3 2025 earnings on November 5.
The adjustment comes after BTIG analyst Clark Lampen noted "mixed" feedback regarding AppLovin’s non-gaming referral program, which was less positive than anticipated based on conversations through October. Despite this adjustment, InvestingPro data shows AppLovin has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength and stability.
BTIG observed strong non-gaming spending trends in the third quarter but has tempered its fourth-quarter non-gaming estimates to reflect some hesitation among advertisers to test and scale new products during a seasonally stronger period. This comes despite AppLovin’s remarkable revenue growth of 78.9% over the last twelve months.
Despite the more conservative outlook on the referral program, BTIG highlighted that other third-party data sources suggest more positive trends, and historical feedback indicates a large backlog of demand that AppLovin may be accessing independently. While AppLovin trades at a high P/E ratio of 86, its PEG ratio of 0.38 suggests it may be reasonably valued relative to its growth rate.
BTIG remains "comfortable with the setup" heading into AppLovin’s third-quarter 2025 earnings report, seeing potential for the company to meet or exceed both Street guidance and current buy-side expectations. Analyst targets for the stock range from $360 to $860, with a consensus recommendation leaning toward Buy. According to InvestingPro, AppLovin appears overvalued compared to its calculated Fair Value, though it has delivered an extraordinary 266% return over the past year. Discover more insights with AppLovin’s comprehensive Pro Research Report, available along with 16 additional ProTips and extensive financial metrics.
In other recent news, AppLovin Corp has been the subject of multiple regulatory investigations. The New York Post reported that state attorneys general from Delaware, Oregon, and Connecticut are examining the company’s data collection practices. Additionally, the Securities and Exchange Commission (SEC) is investigating allegations that AppLovin may have violated service agreements to enhance targeted advertising. Despite these legal challenges, Oppenheimer has maintained its Outperform rating for the company, citing strong e-commerce capabilities. RBC Capital also initiated coverage with an Outperform rating, highlighting AppLovin’s strong position in the ad-tech sector. Furthermore, S&P Global Ratings upgraded AppLovin’s credit rating to ’BBB’, reflecting improved business prospects and competitive positioning. Analysts from S&P expect significant revenue growth for the company, projecting a 65% increase in 2025 and an additional 25% in 2026. These developments underscore the complex landscape AppLovin navigates as it continues to expand its digital advertising footprint.
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